WEF Founder and Executive Chairman Klaus Schwab (photo: AP)

On Monday and Tuesday, 2,700 politicians and economists try to find some answers to some very thorny problems.

Challenges to the global economy

The global economy, which has not fully recovered from the COVID-19 pandemic, is facing a crisis driven principally by the Russia-Ukraine conflict, which has slowed growth, boosted inflation, and triggered energy, food, supply chain, and migration crises. These crises have exacerbated geopolitical divisions and disagreements.

WEF Founder and Executive Chairman Klaus Schwab said political, economic, and social forces are causing increasing fragmentation at the global and national level.

According to international experts, the situation is posing a serious challenge to global economic growth. On Sunday just a day before the opening of the WEF Conference, the International Monetary Fund (IMF) released a report on the severe fragmentation of the global economy which could cut global economic output by 7%, a cut output 8-12% in some economies. Global GDP could shrink 0.2%.

IMF Managing Director Kristalina Georgieva said the world economy will face many difficulties this year, with the main drivers of global growth showing weakness. Major economies like the US, Europe, and China are sinking, and consequently, a third of the economies around the world will likely fall into a recession. Half of the European Union’s economies are facing recession.

Strengthening cooperation to overcome crisis

The WEF conference themed “Cooperation in a fragmented world" reflects the current challenges to the world economy and delivers a very clear message that only strengthened cooperation can overcome the current crisis.

The agenda of this year's WEF is focused on solutions and public-private partnerships to address the world's pressing challenges. Specifically, the sessions will deal with energy and food crises in the context of climate change, high inflation, low growth, public debt, and the threat of economic recession, changes in industries and industrial development in the new technology era, and the shortage of skilled workers, income inequality, and the market for female workers. The Russia-Ukraine conflict and its subsequent geopolitical upheavals, humanitarian aid and reconstruction will also be discussed at the forum.

In official discussions and on the sidelines, world leaders will try to work together on energy, climate and nature; investment, trade and infrastructure; advanced technology and industry resilience; employment, skills and health; and geopolitical cooperation in a multi-polar world.

According to WEF Founder and Executive Chairman, Professor Klaus Schwab, to address the root causes of the erosion of trust that the world is experiencing, it is necessary to strengthen cooperation between the government and business, and create favorable conditions for a strong and sustainable recovery. Economic development needs to be more flexible and sustainable so that no one is left behind.