Live updates from the Davos World Economic Forum

The most recent information regarding the World Economic Forum meeting in Davos, Switzerland

The director of the Foreign Monetary Fund has issued a warning that allowing international conflicts to destabilize the world economy could result in lost growth costing trillions of dollars.

At the World Economic Forum in Davos, Switzerland, IMF Managing Director Kristalina Georgieva encouraged corporate and political leaders to “wake up” and protect global commerce while also trying to protect their supply sources from disruption.

According to Georgieva, the pandemic and Russia’s conflict in Ukraine demonstrated the need for some redundancy in the locations from which enterprises acquire their raw materials and parts.

To “keep that to the level where we make the international economy more resilient and not drive the globe into a place where we would all be poorer and less secure,” however, is the wise course of action.

Rearranging supply chains without impeding trade would only slow world development by 0.2% of total output. The size of the economies of Japan and Germany combined would be $7 trillion, or 7% of the world economy, if trade were to collapse.

“I worry that we are entering this world while asleep. But look, Davos is here! Get up! Make the right decision! She said, eliciting cheers from the audience.

KEY EVOLUTIONS:

In the midst of a war, Ukraine’s first lady urges politicians to use their power

EU chief proposes clean technology strategy to rival China and the US

World Economic Forum is the object of online conspiracies.

Even as utility workers strive to restore the infrastructure that Russian missiles have devastated, two senior Ukrainian officials said that economic reforms necessary to draw investors cannot wait until the war is over.

The country’s court needs to be reformed, according to Oleksiy Chernyshov, the president of the state-owned energy business Naftogaz, in order to attract fresh investment and aid in the nation’s reconstruction.

He participated in a discussion on Ukraine’s future on Tuesday with First Deputy Prime Minister Yulia Svyrydenko, who is also the Minister of the Economy, at the World Economic Forum meeting in Davos, Switzerland.

According to Svyrydenko, the government wants to position Ukraine as a top investment location “on the second day following the triumph.”

Prior to the war, Ukraine attempted to restructure its legal system and rein in the power of politically connected businessmen known as oligarchs.

The conflict, according to economists working on the nation’s reconstruction challenges, presents an opportunity to hasten changes by elevating them to a matter of patriotism and national survival.

 

USAID would be increasing assistance for the Global Alliance for Trade Facilitation, according to Samantha Power, administrator of the U.S. Agency for International Development.

Power said the program was developed in conjunction with the forum because the private sector complained that doing business in some countries was difficult and asked USAID and other government actors to make it easier during a panel discussion on democracy on Tuesday at the World Economic Forum’s meeting in Davos, Switzerland.

“We’re going to rush support to Ecuador, Tanzania, and other countries like that again are trying to enable trade and not only again the conventional tool set for democracy development,” she declares.

Power claimed that many nations are making challenging decisions to solve issues as they attempt to enact political reforms. Public-private partnerships, according to her, might support those initiatives.

Check for investment prospects in nations that are “doing hard things, that are pushing for more transparency, fighting those anti-democratic forces,” she pleaded with businesses.

 

It “will take some time,” according to Polish President Andrzej Duda, to put together a global alliance that might send “at least an armored brigade” to Ukraine.

As Ukraine has been battling Russia’s incursion since February, Duda emphasized that Ukraine is asking for contemporary Western armaments and tanks and is “depending on the allies to individually send a few or roughly twelve tanks.”

After a panel at the World Economic Forum in Davos, Switzerland, he told Polish media that he is relying on Finland and other European nations, notably Germany, which own Leopard tanks.

Duda emphasized that in order to transfer the Leopard tanks to Ukraine, Germany’s consent will be necessary.

The British government has offered to send its Challenger tanks, and Duda has thanked them for their generosity.

 

Al Gore, a former vice president of the United States, underlined the importance of reforming multilateral development banks in order for the world to quickly decarbonize and achieve its climate goals.

He cited the World Bank, whose CEO David Malpass came under fire in September for refusing to say if using fossil fuels has contributed to global warming in a direct manner. I am not a scientist, he remarked instead.

He has refuted Gore’s claims that he denies global warming. Fore stated that “if we have a worldwide allocation mechanism for money that deprives the vast majority of people who live in developing nations from any real access then we are deceiving ourselves” during a panel discussion at the World Economic Forum event on Tuesday in Davos, Switzerland.

Gore estimates that the developing world will account for 88% of the predicted rise in emissions of gases that cause global warming, but the majority of these countries currently lack access to private money.

He claimed that, for instance, interest rates in Nigeria are seven times higher than in nations in Europe or North America.

 

The head of the opposition in Belarus claims that the trial that is being held against her in Minsk is “a farce” and that she has still not been informed of the allegations.

Sviatlana Tsikhanouskaya expressed her concern that Belarus was being “overlooked” by the conflict in Ukraine in an interview with The Associated Press on Tuesday while the World Economic Forum was meeting in the Swiss town of Davos. She also cautioned that the region would not be stable without a democratic Belarus.

As 2023 begins with conflict and economic difficulties, the elite group of political leaders, corporate executives, and cultural trend-setters will discuss issues facing a divided world.

Tsikhanouskaya stated that while she would be open to meeting with either the Ukrainian government or first lady Olena Zelenska, who is also present at the meeting, she understood the sensitivity and anxiety it may incite in Belrusian President Alexander Lukashenko.

Following the beating the world’s second-largest economy endured during nearly three years of lockdowns, quarantines, and stringent COVID-19 containment procedures, Chinese Vice Premier Liu He outlined an upbeat future for the country.

In a speech delivered on Tuesday at the World Economic Forum conference in Davos, Switzerland, Liu, a senior economic official on the State Cabinet, China’s Cabinet, asserted that “if we work hard enough, we are certain that in 2023, China’s economy will most likely revert to its normal trajectory. There will be a big improvement in the Chinese economy.

According to Liu, China anticipates significant increases in imports, corporate investment, and a return to normal consumption patterns in the upcoming months. According to him, removing COVID limitations and lifting quarantines for visitors from overseas are crucial to the recovery of the economy.

His comments come as China on Tuesday released data showing that last year, under pressure from anti-virus controls and a real estate downturn, the country’s economic growth plummeted to its second-lowest level in at least four decades.

In 2022, China’s GDP expanded by 3%, which is less than half of the 8.1% annual growth rate. After 2020, when growth dropped to 2.4%, that was the second-lowest yearly rate since at least the 1970s.

Liu noted the efforts made by the government to control the previous fall, particularly in assisting the real estate sector, which generates 50% of local government revenue and 40% of all bank credit. China’s goal, according to him, is “high quality economic development,” restructuring state-owned firms, and assisting the private sector after years of rapid economic expansion.

He also reaffirmed China’s commitment to its environmental improvement and carbon reduction targets. According to China, carbon emissions will reach their peak in 2030 and reach carbon neutrality in 2060. He claims that China will accomplish this via a variety of renewable energy sources.

The majority of China’s energy is produced by coal, making it the top carbon emitter in the world.

 

According to John Kerry, the U.S. climate envoy, barely 2% of the over $1 trillion donated by international philanthropies for diverse causes over the past few years goes toward climate action.

In a panel discussion on Tuesday at the World Economic Forum in Davos, he stated that between $7.5 billion and $12.5 billion of global charity is thought to be devoted to climate change. He and others urged philanthropies all across the world to band together and make greater contributions to tackling climate change.

How do we get there, then? Kerry inquired about preserving international climate targets. In response, he said, “Well, the lesson I’ve learned in the last year is money, money, money, money, money, and it has been reinforced in spades since I learned it as secretary of state.”

The GAEA’s Call to Action, a new worldwide initiative by the World Economic Forum to increase philanthropy that may support climate action, was also introduced during the panel discussion.

 

The European Union is advancing with a sizable clean tech industrial strategy that should not only maintain the continent at the forefront of planning a greener future but also ensure its economic survival as it competes with China and the United States.

Ursula von der Leyen, president of the EU Commission, unveiled the general framework of her “Green Deal Industrial Plan,” which will make it much simpler to push through subsidies for green industries and combine projects across the EU that are supported by significant funding as the EU works toward its goal of becoming climate neutral by 2050.

Von der Leyen asserts that the 27-nation bloc will become considerably more strong in retaliating against unfair commercial practices, particularly if they originate from Washington or, more importantly, Beijing, in remarks made on Tuesday at the World Economic Forum in Davos, Switzerland.

Before the 27 leaders of the member countries gather for a summit on the subject on February 9–10, Von der Leyen’s blueprint will now serve as the primary source of discussion among them.

 

Ukraine’s first lady blasted out at Russia as the anniversary of the conflict in Ukraine nears, saying parents are in tears watching medics trying to save their children, farmers are frightened to go back to their fields littered with deadly mines and that “we cannot allow a second Chernobyl to happen.”

In a speech delivered on Tuesday at the World Economic Forum conference in the Swiss resort of Davos, Olena Zelenska also chastised political figures and business executives for not always exerting enough influence.

She referred to mass famine as “an insult to mankind and human nature,” given that the conflict has increased inflation and increased food insecurity in poor countries.

She claims that although the conflict may spread beyond the borders of Ukraine and exacerbate the crisis, “unity is what brings peace back.”

Zelenska claims to have given Vice Premier Liu He letters from the Ukrainian government to Chinese President Xi Jinping and European Commission President Ursula von der Leyen that she will present to them both during their Tuesday Davos speeches.

 

According to the chairman of the International Energy Agency, issues over supply security and environmental concerns have both increased as a result of Russia’s invasion of Ukraine.

However, IEA Executive Director Fatih Birol noted that investment in renewable energy is still far behind what is required during a panel discussion on Tuesday at the World Economic Forum in Davos, Switzerland.

The disruption of Russian oil and gas supply, he claims, means that “energy security is the biggest driver of renewable energy growth today because domestic renewables are the energy of peace.”

The transition to battery-powered vehicles, which Birol noted as progress, increased from 3 out of every 100 vehicles sold in 2019 to 13% last year. By 2030, he claims, every other car will be electric in the key markets.

He applauded government initiatives like the U.S. Inflation Reduction Act and the EU’s Fit for 55 goals, but he cautioned that efforts from wealthy nations alone won’t be sufficient if underdeveloped countries can’t afford the switch to energy sources that release less climate-changing carbon dioxide.

Currently, $1.50 is spent on renewable energy for every $1 spent on fossil fuels, according to Birol: “If we want to meet our target, the ratio needs to be one to nine.”

 

The German government will eventually agree to send strong Leopard tanks to Ukraine, according to Polish President Andrzej Duda, who bases this prediction on Germany’s NATO membership and growing popular support for the Ukrainians suffering under Russia’s conflict.

During a discussion on Tuesday at the World Economic Forum in Davos, the Polish president made the joke, “We don’t mention that Ukraine will win this war, we mention that Ukraine will not lose this war,” and then he laughed.

Gitanas Nauseda, his colleague in Lithuania, spoke out immediately and said, “I mention that Ukraine will win this war.”

Nearly a year into the conflict, Ukrainian President Volodymyr Zelenskyy has been pleading for more Western weapons like tanks and air defense systems.

The fact that NATO allies like Britain have promised to send new tanks to Ukraine, according to Duda, is a “significant moment” and may have an impact on the administration of Chancellor Olaf Scholz.

Germany will “consider every step carefully” and confer with its partners regarding additional arms transfers to Ukraine, according to Scholz, who will be speaking at Davos on Wednesday.

Duda added that support for Ukraine in Germany was growing “stronger and stronger and stronger,” and he hoped that this would lead to the “very required decision” to send Leopards to Ukraine.

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