Global Inequality and the Davos Meeting
The wealthy and powerful are meeting again this year in glamorous Davos at an invitation-only event. They arrive in chartered aircraft and private jets to speak about our warming climate, among other global concerns.
The State of Global Inequality
The super-rich politicians and celebrities gather for the World Economic Forum’s annual meeting later this month (January 15-19 in Davos) when global inequity is at its highest. Last year saw a phenomenal growth of wealth in significant economies, with valuations of at least eight companies exceeding the trillion-dollar mark.
On the other hand, those at the margins are barely scraping a living and are preoccupied with where their next meal is coming from. Globally, 7.33 million people face hunger, and 2.33 billion are food insecure. The situation is most dire in the 44 Least Developed Countries (LDCs).
Solutions and Priorities
The data show that it is getting worse for people living in the poorest and most vulnerable countries. According to Oxfam, the wealthiest one percent own almost half of the world’s wealth, while the poorest own just 0.75 percent. In addition to inequality, geopolitical tensions and external threats, including climate change, are rising. At the same time, the global economic outlook remains subdued.
The 2025 theme for Davos, ‘Collaboration for the Intelligent Age,’ is particularly timely for wealthy countries, which reap rich dividends due to rapid technological advancements. Equally, the theme holds profound significance for people living in LDCs, where new and relevant technologies can permanently alter their development trajectory.
Reimagining Growth
The World Economic Forum notes that the digital economy has the potential to account for up to 70 percent of the new value generated globally in the next ten years. This potential and attendant economic benefits will reside overwhelmingly in the wealthiest countries. Nonetheless, the digital economy provides an outstanding opportunity for the poorest countries to leapfrog in their development gains.
Industries in the Intelligent Age
This thematic focus is invariably on the world’s largest businesses and economies. However, big business can do much to help grow a global economy that benefits everyone. Sharing best practices and investing in LDCs are prime examples of ways to promote a more equitable transition into the tech future. Business is vital in enhancing these countries’ presence in global supply chains.
Investing in People
Globally, education systems struggle to adapt to fast-changing technologies, with just 54% of countries having digital skill standards. However, in the world’s poorest nations, 260 million primary and secondary school people did not attend school in 2020. As long as LDCs spend more on servicing their external debt than on education, this appalling inequality will not change.
Large pockets of the world’s poorest are starving due to climate-induced disasters and food insecurity. Climate financing action is vital for LDCs, which contribute less than four percent of global emissions but bear some of the most severe impacts of climate change.
There is much talk about global collaboration and multilateralism – at a time of rising global inequality and increasing isolationism. Davos could do well to foster greater inclusivity and, in doing so, build this much-needed trust and hope.
A global future rooted in equity, shared prosperity, and collective resilience is possible and essential for us all. Davos 2025 must seize the opportunity to redefine itself as a proper forum for global progress.
* What is the theme of the 2025 Davos meeting?
+ Collaboration for the Intelligent Age
* What is the state of global inequality?
+ The wealthiest one percent own almost half of the world’s wealth, while the poorest own just 0.75 percent
* What is the potential of the digital economy?
+ To account for up to 70 percent of the new value generated globally in the next ten years
* What is the situation like in the Least Developed Countries (LDCs)?
+ 7.33 million people face hunger, and 2.33 billion are food insecure; only 36 percent of their citizens have access to the Internet, and digital infrastructure is weak