Davos: Why the global elites couldn’t find answers this year?

davos

World Economic Forum, 2017

Last January, Donald Trump and Boris Johnson were not invited to Davos to present their populist, anti-systemic, anti-establishment, anti-globalization political platforms. Actually, their ‘ideology’ was exorcised from the Swiss Alps and instead, David Cameron was made the star of the three day 2016 meeting. The world’s super rich and powerful applauded his passionate speech about why and how poor David was planning to keep Britain in the European Union.

On that occasion, ill-starred Cameron in vain reassured his audience that his country will continue constituting the financial hub of the European Union. As it turned out however, the EU club was seen by many in Britain as in the rest of Europe and elsewhere, as the Trojan Horse of globalization, and for this reason deserved to be burned up. Now, his successor Teresa May, says Britain will make sail from Europe, to become the financial hub of the open seas, obviously to the detriment of country’s hard working millions. All tax havens are either run by mafias or by dictators, making sure that the profits go to the few. A European democracy with advanced social protection systems is not compatible with the low tax regimes of a tax-haven. Let’s return to the Alps.

The fallacies of January 2016

On January 2016, every Davos attendee renounced the option that Britain would leave the EU or that Trump would rule in the American political system. The Brexit and the 8 November US election results must have come as a strong blow to the Alpine globalization ‘authority’. World Economic Forum founder professor Klaus Schwab likes to think that the Davos Conferences are at the heart of the global establishment, both on economic and political levels, and as such, being competent to authoritatively discuss or even shape the future of mankind. Alas, as ordinary people say ‘Man proposes God disposes’.

For obvious reasons, Trump and Johnson again this year were not invited to Davos. On the contrary, at the beginning of the 2017 Conference last Tuesday, the constant Swiss professor, from his high altitude position, chose to criticize the political developments that brought them to power. In this line of thinking, Shwab accused the citizens of Britain and the US that they voted …emotionally, understandably by rejecting the voice of logic; his logic? It‘s not only the high altitude professor’s logic which differs widely from what working and voting people think. Actually, every international authority from the IMF to UN and all and every government leader from Beijing to Paris and Berlin had ‘advised’ the Brits and the Americans to vote ‘logically’ and remain in the EU or vote for Hillary Clinton. However, for some very good reasons people choose to do the opposite.

The turn of China

Still, the most important participant of this year’s Davos meetings, the Chinese President Xi Jinping insisted that globalization is not to be blamed. He also stressed that protectionism will be detrimental for everybody and even brandished the dangers of a trade war. In any case, the Chinese leader, a pragmatist that he is, in his last Tuesday’s speech indirectly told his audience that the current anti-globalization momentum in the West will not subside. That’s why Xi said China’s global role will be from now on more important, since the US is bound to start looking inwards. Undeniably, he is quite right.

Xi’s Davos speech gave the essence of this year’s Alpine gathering. As the Trump era dawns, every important political or business leader has to confront the new global environment which will be shaped after 20 January. This is an unstoppable trend. And it is unstoppable not because of Trump. There are other forces much more potent; irresistible, in fact. The new anti-globalization energy has been building up from very deeply in the Western societies, as they have being reformed during the last twenty globalization years. The very simple recipe of producing in low cost countries and selling the products free of import duties to the US and Europe at unjustifiably high prices has already exhausted America and the EU.

The West cannot take any more

The Western governments and consumers are now over-indebted and cannot continue consuming imported products. On top of that, the working environment in the Western countries has become totally unstable and frequently intolerable for the many, who have started reacting by voting ‘illogically’. For a large part of the working force, even in full employment, it’s very difficult to make ends meet. That’s why immigrants constitute a terrible menace to European and US natives, because destitute Africans, Asians and Latin Americans are willing to work for even less.

In reality, emigration tends to equalize the low end salaries in the developed world with wages in low labour cost countries. No surprise then, if this year produces even more unpleasant political surprises for the organizers and the attendees of the Alpine conferences. The Dutch people vote for a new Parliament in March. The polls give the first place to Geert Wilders’ anti-EU, anti-establishment, anti-immigration, anti-globalization extreme right-wing populist party. Wilders’ political platform and audience resemble Trump’s Brexiteers’. Mind you, according to the Dutch constitution, the first party gets the prime minister’s job, in a customarily multi party government coalition.

The Europeans vote

Then, the French Presidential election come April and after that in September, the Germans vote for a new federal parliament. Not without reason, every time the Americans or the Europeans go to the polling stations, the established political and economic leadership cannot sleep at night. This is the reason why the global elites couldn’t find answers this year at Davos, apart from Shwab’s nonsense that citizens vote ‘emotionally’.

In conclusion, it’s beyond reasonable doubt that globalization has numbered its days. The Western economic and political systems cannot anymore support the kind of solutions that Shwab and his clientele approve of. Alas, the tragedy is that the solution offered by Trump, May, Marine le Pen and Wilders will very probably lead their countries and voters to the dark ages of aggressive nationalism without, and tyranny within.

Last Tuesday, May already said that her government of Brexiteers will transform Britain into a third world kind of tax-haven, declaring at the same time a trade war against mainland Europe. Imagine then a world where extreme right populist governments, will start threatening each other every time they have to answer their internal audience question: why are things getting worse?

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Comprehensive listening: a tool to humanize Primary Healthcare and medical specialties

Commission adopts €4 billion investment package for infrastructure projects across 10 Member States

EU gas market: new rules agreed will also cover gas pipelines entering the EU

3 ways to use digital identity systems in global supply chains

‘Cataclysmic events’ in Hiroshima, Nagasaki, began ‘global push’ against nuclear weapons says Guterres, honouring victims

Another doomed EU attempt to interfere in Libya?

Brexit: UK to suffer from EU’s uncompromising stance

Global trade is broken. Here are five ways to rebuild it

A Trumpist squad shook Davos and the world

The US + Britain trivialize mainland Europe, NATO and the EU

The DNA of the future retail CEO

UN chief praises Japanese climate resilience, as Typhoon Hagibis cleanup begins

Further reforms needed for a stronger and more inclusive Argentine economy

From violence to dialogue: as land conflicts intensify, UN boosts efforts to resolve disputes through mediation

12 ways the tech sector can help save the climate in 12 years

Sudan military committed to ‘ensuring stability’ and ‘peaceful transition’ says senior diplomat, as UN rights chief appeals for protesters’ rights to be upheld

How secure is blockchain?

Systems leadership can change the world – but what exactly is it?

The Commission unsuccessfully pretends to want curbing of tax evasion

EU Youth Conference in Riga concludes with recommendations for ministers

Creating shared value: an opportunity and challenge for entrepreneurship

UNESCO experts ready to assist reconstruction of iconic Notre Dame, following devastating blaze

Eurozone banks to separate risky activities: Can they stay afloat?

Russia – US in Syria: Selling Afrin to Turkey but facing off ruthlessly for Ghouta

Gender equality within junior enterprises: the effect of President’s gender

One Hundred Years of Qipao History: from Shanghai to EU

Time is running out to protect Africa’s forests

The EU responds to US challenges by fining Apple with €13 billion

European Union: Retail sales show deep recession

WHO and UNICEF in campaign to protect 1.6 million in Sudan from cholera

Monday’s Daily Brief: Independent UN experts on Myanmar, UN chief renounces attacks in US, Libyan airport violence, UN spokesperson on Kashmir, and FAO and Italy on development

Keeping cool in the face of climate change

Preferential tariffs to help Western Sahara to develop

Syria: Ease suffering, save lives, UN Emergency Relief Coordinator tells Security Council

Four years on and half a billion dollars later – Tax Inspectors Without Borders

How Africa’s women can drive the 4IR forward

Corporate tax remains a key revenue source, despite falling rates worldwide

European banking stress tests 2014: A more adverse approach for a shorter banking sector

Guterres censures terrorist attacks in Nigeria, pledges UN ‘solidarity’

Mine ban agreement ‘has saved countless lives’, but ‘accelerated efforts’ needed to end scourge for good: Guterres

FROM THE FIELD: ‘Miraculous’ music made by hearing-impaired children

The EU bows to Turkey in view of the talks for a political settlement in Syria

New roadmap toward healthier and cleaner oceans adopted by UN Environment and European Commission

Final preparations for DCX and IFRA Expo 2019, in association with The European Sting

OECD sees global growth slowing, as Europe weakens and risks persist

EU officially launches its first naval mission against migrant smugglers

Berlin vies for a Germanic European Central Bank

New book honours UN women who made HERstory

Jean-Claude Juncker and Theresa May at last week’s EU Council. Source: EC Audiovisual Services / Copyright: European Union, 2017 / Photo: Etienne Ansotte

EU leaders open “Phase Two” of Brexit talks and warn Theresa May of tougher times

2014 budget: The EU may prove unable to agree on own resources

EU to spend €135.5 billion in 2014 or 6.5% less than this year

Mirrored classroom display highlights scale of massive education crisis

Can cybersecurity offer value for money?

Costa Rica is one of the world’s happiest countries. Here’s what it does differently

EU-US relations on the dawn of the Trump era

Celebrating Gaston Ramon – the vet who discovered vaccinology’s secret weapon

No improvement in respect for EU values: MEPs cut support for Turkey by €70m

These are India’s cleanest cities

Reforms in the Western Balkans and Turkey: annual assessments and recommendations

Tech companies could achieve much more by serving the common good. Here’s 3 steps they should take

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s