DAVOS-2024

The 54th edition of the World Economic Forum (WEF) brought together leaders from governments, international organisations, businesses, academia, civil society and the media at the Swiss ski resort of Davos. The theme of this year's gathering was "Restoring Trust", and the participants explored how to foster the "basic principles of trust" - transparency, consistency and accountability - in a world facing multiple crises.

However, the annual meeting has seen a decline in the attendance of high-profile figures in recent years. This may reflect the growing distrust and discontent in the global community, as well as the challenges posed by the lack of trust. Notably, Azerbaijani President Ilham Aliyev was absent from the forum. The official delegation from Baku was led by Minister of Economy Mikayil Jabbarov.

Key topics on the global agenda

Davos is not a place where concrete solutions are reached, but rather a platform where potential sources of global conflict can be identified and addressed.

The WEF's approach to tackling big problems is based on facilitating dialogue and cooperation among the key actors of the political and economic spheres.

Lately, the WEF has emerged as the main advocate of public-private partnerships and multi-stakeholder collaboration in response to universal challenges. While the real value of the format lies in networking and applying knowledge and experience to overcome current difficulties, its increasingly complex discourse has also attracted a lot of criticism about its effectiveness.

Nevertheless, given the scarcity of other large-scale discussion venues where representatives of the global South can interact with those of the global North, Davos remains an appealing space for fostering a common dialogue on topical issues. And there is no shortage of them today.

According to the WEF's Global Risks Report 2024, misinformation and disinformation will pose the greatest threat to the world in the next two years. Extreme weather events driven by climate change and political polarisation of society are the second and third most urgent, respectively.

Artificial intelligence: priority number one

Artificial intelligence (AI), which can produce convincing disinformation at a rapid pace, has been recognised as a major factor in the spread of misinformation.

So far, there are few comprehensive solutions to the problem. The European Union has a provisional agreement to regulate AI, but a complete regulation is still missing.

Another AI-related topic discussed was the impact of AI adoption on the labour market.

According to a survey released in Davos at a meeting of business leaders, a quarter of CEOs worldwide expect the use of generative artificial intelligence to reduce their workforce by at least 5 per cent this year.

According to the latest survey of top executives by consultancy PwC, job cuts are more likely to affect industries such as media, entertainment, banking, insurance and logistics. On the other hand, engineering and construction firms, as well as technology companies, expect the least layoffs due to automation.

Some 46 per cent of respondents believe that the use of generative artificial intelligence - systems that can generate human text, images and code in seconds - will improve the profitability of many businesses within a year. However, 47 per cent believe the technology will bring little or no change at all.

The results, based on interviews with 4,702 CEOs in 105 countries, indicate an anticipation that AI models will have a significant impact on the economy and society and that the topic will be prominent in future discussions.

Davos priorities: from Ukraine to green transition

Among the key topics of discussion and their outcomes, the leaders of the world's top banks warned of inflationary pressures due to rising delivery costs and a possible surge in oil prices. They also discussed the consolidation of European banks behind closed doors, and did not rule out selective mergers of some financial institutions.

Another critical issue that drew attention was the situation in Ukraine. President Vladimir Zelensky ensured that the topic was on the Davos agenda beforehand. He held discussions with more than 80 national security advisors from around the world, which resulted in Switzerland offering to host peace talks. Zelensky also met with Wall Street's Jamie Dimon and other bank executives to discuss post-conflict financing for Ukraine's reconstruction.

Climate change was another major issue of debate. Scientists reported that Greenland's ice cover has shrunk by about 20 per cent since the 1990s, potentially endangering ocean currents that help regulate global temperatures.

In recent years, weather stations and satellites have recorded very high temperatures on almost every continent. The UN estimates that in 2022 and 2023, 1.84 billion people worldwide, or nearly a quarter of humanity, lived in hot countries with insufficient drinking water. And the vast majority of them lived in low- and middle-income countries. The crisis, worsened by climate change, is accompanied by soaring food prices and could have negative consequences for food security and migration.

The year 2023 was the hottest year on Earth in a century and a half. Unchecked greenhouse gas emissions have pushed global warming to new levels. There are many forecasts that each subsequent year could be hotter than the previous one.

Although the Davos programme changes from year to year, the interest in climate change is constant.

Climate change is a major long-term challenge, requiring huge investments with minimal returns in the short term. A fundamental transformation of energy, agriculture, transport, heavy industry and much more will require not only large-scale capital investments, but also significant reform of the existing regulatory framework.

"Green" agenda of Azerbaijani participation

The annual UN Climate Change Conference makes a meaningful practical contribution to the global climate agenda. Today it is the highest negotiating body for the implementation of the provisions of the UN Framework Convention on Climate Change and other important documents. It is better known by the acronym UNFCCC.

The next COP29 conference will be held at the end of the year in Baku. Mikayil Jabbarov, head of the Azerbaijani delegation in Davos, informed the participants of the event about the preparations for the conference. Members of the delegation shared their ideas on efficient use of energy and reducing the impact of climate change on human life. Baku's approach to financial mechanisms to reduce dependence on fossil fuels and promote green energy, which is the main theme of COP29, was also discussed.

"Azerbaijan has made a conscious choice, using its revenues, including from fossil fuels, to start the transition to clean energy. And I think that in our particular case, we are well ahead of our goal of meeting 30 per cent of our total energy needs from renewable energy by 2030. We think we can achieve this by about 2028 if we continue on the same path," the Azerbaijani minister said.

The Azerbaijani delegation in Davos focused on discussing specific topics related to the green transition. In this regard, the Minister of Economy also met with Morten Dyrholm, vice-president of the Danish company Vestas Wind Systems A/S. This company is one of the world's largest manufacturers of wind turbines. The parties presumably discussed the potential steps to implement the company's investment projects in Azerbaijan.

Mikayil Jabbarov and Shahmar Movsumov, Head of the Economic Affairs and Innovative Development Policy Department of the Presidential Administration, held consultations with Ricardo Hausman, Head of the Harvard Growth Lab. The lab is known for studying economic growth and development policy and sharing its ideas through various training methods. Growth Lab is currently running research programmes.

At the session "Leadership in Trade and Investment", Jabbarov spoke about the significant economic potential of the liberated territories – Garabagh and East Zangezur; the industrial zones operating in Azerbaijan; and the prospects of using the country's resources for sustainable development.

If we compare the highlights of Azerbaijani participation in the 54th World Economic Forum with its agenda, they fully align with its goals - to promote trust-building dialogue. As for practical results, they will be possible to discuss by the end of the year.