Davos 2023: Why Are People Gathering Face-to-Face in the Snowy Mountains Again?

<Table of Contents>
▼First in-person January meeting in three years

▼Globalization: Progress or Retreat?

▼European Commission President counters US "green subsidies"

▼Concluding with the "Outlook for the Global Economy"

▼Focus on the start of battery passport demonstration tests

▼Signs of expansion for "Affiliate Sessions" planned by member companies

▼Showcases remain lively. Business meetings accelerate

▼The value of the "Davos Meeting"

First in-person January meeting in three years

The World Economic Forum Annual Meeting, commonly known as the "Davos Meeting," took place from January 16 to 20, 2023. While the previous annual meeting was held in person in May 2022, this January event marked the first time in three years since 2020—before the spread of COVID-19—that it was held in January.

This year, 47 heads of state and over 350 ministers from 90 countries gathered, with a total of more than 2,700 participants from 130 countries. Discussions centered on the theme " Shaping Cooperation in a Divided World."

Following the previous year's meeting, Russia did not participate. In the over 50-year history of the "Davos Meeting," which aims to solve global challenges through dialogue, parties involved in issues like South Africa and the Middle East have engaged in talks. However, this time, Ukraine and Russia did not meet face-to-face in Davos.

Over 480 sessions were held during the five-day event. Without a clear personal theme, participants risk merely being exposed to a flood of information. Therefore, attendees set their own agendas beforehand, defining what they hoped to gain.

This year's sessions were structured around five subthemes, allowing participants to choose based on their interests.

This time, we introduce the global trends and key topics emerging from Davos 2023.

Globalization: Advancement or Retreat?

Amidst talk of globalization's end, the session titled "Globalization: Advancement or Retreat?" featured international political scientist Ian Bremmer. He cited the worsening geopolitical situation due to the dysfunction of international institutions as a structural change. He also mentioned the confrontations between nations, such as China's state capitalism, the US's increasingly inward-looking stance, and Russia's behavior.

He also pointed out that rising prices have made it difficult for companies to increase profits even when they relocate their production bases to low-cost regions, which is also causing a retreat from globalization.

Historian Ferguson took issue with the theme of "polycrisis," saying, "I don't like the word polycrisis. It's not polyester!" He further countered Bremer, saying, "This is not a geopolitical recession, but simply history in motion." Referring to his 2007 description of the close relationship between the US and China as "Chimerica," he stated, "We are now in a new Cold War, divided between a US-led world order and a China-led world order." Finally, Bremer concluded the discussion by saying, "Globalization is undergoing a course correction, but it will not disappear."

European Commission President counters US "green subsidies"

In her speech, European Commission President Ursula von der Leyen stated, "The EU needs competitiveness that can compete with the policy support and incentives currently available outside the EU." She announced a policy to temporarily relax national subsidy regulations for member states and invest in businesses that provide environmentally friendly technologies and services. The aim is to relax subsidy regulations and encourage investment in climate change measures.

The aim is to counter subsidies for the renewable energy sector included in the Inflation Reduction Act, as the Biden administration shifts from championing globalization to putting its own country first.

Closing with "The Global Economic Outlook"

The panel discussion on the global economy held on the final day is essential for understanding global economic trends. Bank of Japan Governor Haruhiko Kuroda, who has participated annually, may be appearing for the last time this year. Including his time as President of the Asian Development Bank, he is a regular at this session, having participated over ten times. This year's discussions were uniformly optimistic, particularly regarding easing inflation. Kuroda's gesture of raising his hand and smiling after ECB President Lagarde's remarks, among other interactions, hinted at their longstanding rapport from the podium.

Battery Passport Pilot Project Launch Draws Attention

MacArthur (right) of the Ellen MacArthur Foundation at the press conference

The Global Battery Alliance (GBA), comprising over 130 international organizations and companies, announced the start of the world's first Battery Passport(*) pilot on January 18. Batteries are the driving force behind the energy transition to a sustainable future, but they require critical minerals whose extraction involves environmental and human rights risks, including child labor.

How can the Battery Passport contribute to human rights protection, environmental conservation, and consumer decision-making? Ellen MacArthur of the Ellen MacArthur Foundation, a global leader in the circular economy, also took the stage at the press conference to support this initiative.

※ = Battery Passport
By recording information on the entire battery value chain and each stage of its lifecycle on a unified digital platform, it aims to ensure value chain transparency by recreating real-world data in a virtual space on servers. Its implementation is mandated in the EU by 2026.
https://www.globalbattery.org/battery-passport/

Beyond this, the term "reskilling" was frequently heard in sessions and participant conversations. There was also an increase in sessions themed around DEI. Alongside discussions considering LGBTQ+ issues from multiple perspectives, initiatives like addressing cancer in the workplace were launched, reflecting a growing focus on "human capital."

Affiliate sessions organized by member companies show signs of expansion

There are several types of sessions at Davos. Securing a spot on the official program organized by the host requires alignment with the overall theme, expertise, and the language skills to communicate effectively in English, making it no easy feat.

Since the 2020 Annual Meeting, "Affiliate Sessions" have been held, which can be organized by member companies. While they were held quietly in 2020, in 2023, they expanded in scale, primarily led by business consulting firms. Some sessions involved collaborations between companies from different industries, not just a single company. Compared to the main conference hall sessions, these Affiliate Sessions seemed to focus on themes closer to the companies' own businesses and interests.

The venue is the Ice Dome, located across the street from the main conference hall at the hockey field. It's essentially a small, insulated space, like a snow hut, accommodating about 20 people – just the right size for in-depth discussions. A representative from a GAFA-affiliated company that held a session this year mentioned that competition to secure this slot will likely intensify next year. It seems like the perfect place for sharing insights tied to one's own business.

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Showcases remain vibrant. Business meetings accelerate

I'll also cover events outside the official program. As I wrote in " The Davos Conference: Selling Countries and Companies" in 2018, the number of such events hasn't decreased even after the pandemic.

The lineup of showcase participants remained unchanged: GAFA, insurance, finance, consulting firms, and emerging economies. One notable change was India, the G20 chair country, reclaiming the building that had previously housed the Russian House after several years.

Indonesia and Malaysia booth (top left), Ukraine booth (top right), Google booth (bottom left), Fujitsu booth (bottom right)

However, upon closer inspection, every company had expanded their meeting spaces. Securing meeting space in the main conference venue is quite difficult. Japanese companies also set up their own spaces right in the heart of the city hosting the event.

For companies whose primary purpose is "business," meeting in this venue where global political and financial leaders gather is highly efficient. Having experienced restrictions on in-person meetings during the pandemic, the enthusiasm for them seems to have accelerated even further.

The value of the "Davos Meeting"

The January meeting was forced online for two years due to the pandemic, leading some to question whether "Davos had lost its value." While this year saw the largest-ever number of heads of state announced as participants, no U.S. cabinet members attended, and from the G7, only the German Chancellor participated.

World Economic Forum President Schwab sounded the alarm, stating, "A lack of cooperation lies behind the world's fragmentation. As fragmentation deepens, short-term and self-serving policy decisions will prevail."

The conference content itself was actively distributed online by organizers and media, along with social media posts. Thanks to advances in machine translation, information could be accessed in Japan with almost no time lag. Japanese TV stations also actively covered the event throughout its duration.

TV Tokyo Biz "Focus: Davos Conference" https://txbiz.tv-tokyo.co.jp/specials?id=184

However, actually attending in person for the first time in three years, I sensed greater diversity among political participants and accelerated business networking within the venue itself. The value of economic leaders meeting directly here remains undeniably significant. For the business community, the annual January pilgrimage to Davos will surely continue.
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