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davos
We Need System Change, Not Davos Elites 'Rebuilding Trust'
Everyone from the World Economic Forum to the IMF to our governments to the Pope says they agree things need to change. But in practice, we are far from agreement with the rich and powerful about what change needs to happen and who should be driving that change.
Jan 18, 2024
As the world watches South Africa take Israel to the International Court of Justice with a charge of genocidal acts against Palestinians, it is rightly hard to look away. The daily bombings continue in Gaza, as does the human devastation.
With war threatening to escalate in the region, as well as crises in Ecuador, DRC and many other parts of the world, it will have failed to register for many that the annual World Economic Forum in Davos, Switzerland rolls around again this week. In the context of sharpening inequalities, and perilous global politics, what relevance does this gathering have outside the elite bubble?
Their annual Global Risks Report itself posits misinformation, societal polarization, extreme weather conditions, conflict, and rising cost of living among the key risks to the global economy this year. What the WEF has failed to define is that for many, the coming year does not bring the threat of multiple crises. Those crises are already here, and are being lived daily on the streets and in the homes of people on the frontlines of inequality around the world. But we did not seriously expect a self-selecting gathering of the elite to be in touch with that lived reality.
In many ways, multilateralism that the WEF wishes to (but can only in a de facto way) be a part of has never looked more in peril. The UN system is impotent as members fail to enforce the international rule of law on Israel and its allies in the United States. This blatant example of how the international system currently works for the rich and powerful is seen and understood by many, including a disenfranchised younger generation. The specter of protests across the world on the streets in support of a ceasefire in Gaza and broader Palestinian liberation is the power of people on display. It is not hard to imagine that the same people power that will free Palestine will free the world from neoliberalism.
Every January during Davos, our allies Oxfam release jaw dropping statistics about inequality. It does a great job of crystallising for us the depth of the mess we’re in and provides a wedge into what sits beneath—the wider, systemic and intersectional problem. But statistics can only hold up a mirror. It does not change the picture we see staring back at us.
It is not hard to imagine that the same people power that will free Palestine will free the world from neoliberalism.
For people living on the frontlines of inequality across the world, change is in short supply. We’ve won the debates on how bad inequality is and the fact that it requires deep change. Everyone from the WEF to the IMF to our governments to the Pope says they agree things need to change. But in practice, we are far from agreement with the rich and powerful about what change needs to happen and who should be driving that change. Davos talks about rebuilding trust. The people talk of system change.
So where is the change going to come from? Inequality is, at heart, an issue of power. We in the Fight Inequality Alliance know that change comes when people power becomes stronger than those driving and benefitting from the status quo. People are already gathering in different formations and expressing their strong displeasure about the current state of affairs which is built to oppress the majority in favor of a few. The policy prescriptions that would do the most to ensure societies that work for all are largely known and already campaigned on by many. The agenda of taxing the richest people and multinationals more, funding public services, canceling the debt, and providing decent work for all have been the backbone of struggles for a just and equitable world for many years. Charting a path to an economy that puts people and planet ahead of greed and profit is the course to take to answer the dangerous times we are in.
But given the intense concentration of power and wealth in so few hands across the globe, the dangerous sweep of right-wing extremism, sexism, austerity, misogyny, and discrimination, accompanied by a crackdown on democratic rights and freedoms, these struggles needed to join up and build collective power on a larger scale. With over 50 national elections set for this year across a hugely diverse range of countries from India to South Africa, UK to the US, representing over half of humanity’s population, this year will be a test for democracy. What kind of societies are we able to fight for?
Any talk of rebuilding trust must surely sound hollow to those at the sharp end of oppression, injustice, and inequality.
The reality on the streets and the discussions as the WEF meets in the mountains of Davos are totally disconnected from one another. People cannot, and will not ask Davos to solve their problems. How can trust be rebuilt in a system that is designed to exploit and extract from the majority of humanity? Any talk of rebuilding trust must surely sound hollow to those at the sharp end of oppression, injustice, and inequality.
But protestors know that all is not lost. We believe in ourselves, and that change will come. Glimmers appear when people organize themselves and demand progressive change. And progress is made when governments are forced to respond. We have seen moves towards wealth taxes in Mexico and Zimbabwe to name recent examples. In Latin America and the Caribbean (LAC), a groundbreaking summit between governments led to a new direction for more progressive taxation and for the region to raise a united voice on the international tax reform process. The expectation and the demand for fairer and more just societies drive us forward. We can never give that up.
Listen to those on the streets this week. Their stories and demands are the hope that we have.
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Global Cooperation Key to Preventing 'Runaway' Climate and AI Chaos: UN Chief
"Geopolitical divides are preventing us from coming together around global solutions for global challenges," said United Nations Secretary-General António Guterres.
Jan 17, 2024
At the World Economic Forum in Davos, Switzerland on Wednesday, United Nations Secretary-General António Guterres warned that multilateralism that includes often overlooked governments in the Global South is the only solution to the rapidly developing crises posed by the climate emergency and artificial intelligence—both of which are worsening "the global crisis in trust."
"In the face of the serious, even existential threats posed by runaway climate chaos," said Guterres, "and the runaway development of artificial intelligence without guardrails, we seem powerless to act together."
While "droughts, storms, fires, and floods are pummeling countries and communities," particularly in nations that have contributed the least planet-heating fossil fuel pollution, Guterres told the political and business elite assembled in Davos, "countries remain hellbent on raising emissions."
He reserved particular scorn for the United States fossil fuel industry, which—amid the Biden administration's approval of pollution-causing infrastructure including the Willow oil project and the Mountain Valley Pipeline—deceives the public with false climate solutions, misinformation, and greenwashing campaigns "to kneecap progress and keep the oil and gas flowing indefinitely."
As suffering intensifies in communities that are most vulnerable to drought, damage from extreme weather, and other climate catastrophes, Guterres said, fossil fuel giants and powerful governments are risking lives to only delay an "inevitable" shift to renewable energy.
"The phaseout of fossil fuels is essential," said the secretary-general. "No amount of spin or scare tactics will change that. Let's hope it doesn't come too late."
As trust between the Global South and wealthy governments is frayed by fossil fuel-producing countries' refusal to leave oil, gas, and coal behind, Guterres warned that the separate threat of "unintended consequences" of artificial intelligence evolution also looms—for people in rich economies as well as developing countries.
"This technology has enormous potential for sustainable development," said the U.N. chief, while noting that "some powerful tech companies are already pursuing profits with a clear disregard for human rights, personal privacy, and social impact."
Guterres' comments came days after the International Monetary Fund (IMF) released a new analysis of AI's expected impact on the global economy and workers, with nearly 40% of the labor market expected to be "exposed" to AI.
In wealthy countries, about 60% of jobs are projected to be impacted by AI, and about half of those workers are likely to see at least some of their primary tasks being completed by AI tools like ChatGPT or similar technology, "which could lower labor demand, leading to lower wages, and reduced hiring," according to the IMF. "In the most extreme cases, some of these jobs may disappear."
The analysis released Sunday noted that the rapidly changing field could worsen inequality within countries, as some higher earners may be able to "harness AI" and leverage its use for increases in their productivity and pay while those who can't fall behind.
"In most scenarios, AI will likely worsen overall inequality, a troubling trend that policymakers must proactively address to prevent the technology from further stoking social tensions," said the IMF. "It is crucial for countries to establish comprehensive social safety nets and offer retraining programs for vulnerable workers."
Guterres called on policymakers to work closely with the private sector—currently "in the lead on AI expertise and resources"—to "develop a governance model" for AI that is focused on "monitoring and mitigating future harms."
A systematic effort is also needed, said the secretary-general, "to increase access to AI so that developing economies can benefit from its enormous potential."
Along with the IMF and Guterres, global human rights group Amnesty International this week raised alarm about AI and the "urgent but difficult task" of regulating the technology, noting that in addition to changing how people and companies work, AI has the potential to be "used as a means of societal control, mass surveillance, and discrimination."
Police agencies in several countries have begun using AI for so-called "predictive policing," attempting to prevent crimes before they're committed, while officials have also deployed automated systems to detect fraud, determine who can and can't access healthcare and social assistance, as well as to monitor migrants' and refugees' movement.
Amnesty credited the European Union with making headway in regulating AI in 2023, closing out the year by reaching a landmark agreement on the AI Act, which would take steps to protect Europeans from the automation of jobs, the spread of misinformation, and national security threats.
The AI Act, however, has been criticized by rights groups over its failure to ban mass surveillance via live facial recognition tools.
"Others must learn from the E.U. process and ensure there are not loopholes for public and private sector players to circumvent regulatory obligations, and removing any exemptions for AI used within national security or law enforcement is critical to achieving this," said Amnesty.
In Davos on Wednesday, Guterres expressed hope that policymakers will agree on climate, AI, and other solutions that center human rights in the coming year, including at the U.N.'s Summit of the Future, planned for September.
"These two issues—climate and AI—are exhaustively discussed by governments, by the media, and by leaders here in Davos," said Guterres. "And yet, we have not yet an effective global strategy to deal with either. And the reason is simple. Geopolitical divides are preventing us from coming together around global solutions for global challenges."
"The only way to manage this complexity and avoid a slide into chaos," he said, "is through a reformed, inclusive, networked multilateralism."
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Millionaires and Billionaires to Davos Elites: 'We Must Be Taxed More'
"Even millionaires and billionaires like me are saying it's time," said Abigail Disney. "The elites gathering in Davos must take this crisis seriously."
Jan 17, 2024
Survey results released Tuesday as corporate CEOs, top government officials, and other global elites gathered in Davos, Switzerland show that nearly three-quarters of millionaires in G20 countries support higher taxes on extreme wealth, which they view as an increasingly dire threat to democracy.
The poll was conducted by the London-based firm Survation on behalf of the Patriotic Millionaires, an advocacy group that campaigns for a more progressive tax system. The survey, which polled over 2,300 millionaires in G20 nations, found that 74% "support higher taxes on wealth to help address the cost-of-living crisis and improve public services."
More than 70% of the respondents said they believe wealth "helps buy political influence" and a majority see extreme concentrations of wealth at the very top as corrosive to democracy. According to an Oxfam analysis released earlier this week, the world's billionaires have gotten $3.3 trillion richer since 2020 as 5 billion people across the globe have lost ground, struggling to get by as wages fail to keep up with inflation.
"We, the very richest, are sick and tired of inaction, so it's hardly surprising that working people, at the sharp end of our rigged economies, have lost all patience," said Guy Singh-Watson, a British entrepreneur and member of Patriotic Millionaires U.K.
The poll was released as 260 millionaires and billionaires signed a letter imploring the dozens of world leaders at the World Economic Forum in Davos to raise taxes on rich people like them, warning that a continued failure to "address the dramatic rise of income inequality" would be "catastrophic for society."
"Every moment of delay entrenches the dangerous economic status quo, threatens our democratic norms, and passes the buck to our children and grandchildren. Not only do we want to be taxed more but we believe we must be taxed more," the letter reads. "The true measure of a society can be found, not just in how it treats its most vulnerable, but in what it asks of its wealthiest members. Our future is one of tax pride, or economic shame. That's the choice."
"There is a clear social, economic, ecological, intergenerational, and democratic need to address extreme economic inequality."
Abigail Disney, an American documentary filmmaker and letter signatory, said in a statement that "throughout history, pitchforks were the inevitable consequence of extreme discontent, but today, the masses are turning to populism, which is on the rise throughout the world."
"We already know the solution to protect our institutions and stabilize our country: it's taxing extreme wealth," said Disney. "What we lack is the political fortitude to do it. Even millionaires and billionaires like me are saying it's time. The elites gathering in Davos must take this crisis seriously."
A report published Tuesday by the Patriotic Millionaires and allied organizations argues that "the extreme economic conditions of our age are at the heart of the world's overlapping and compounding crises," pointing to the outsized carbon footprints of the ultrawealthy and the ongoing acceleration of inequality.
The report notes that top income tax rates have fallen globally in recent decades, dropping from 58% in 1980 to 42% in recent years across Organization for Economic Cooperation and Development (OECD) countries.
"There is a clear social, economic, ecological, intergenerational, and democratic need to address extreme economic inequality," the report says. "And yet political leaders have failed to take action on the simplest of solutions: raising taxes on the ultra-rich. This is a political choice."
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