Davos summit to grapple with double shock of war and energy crisis

From the ongoing Ukraine war to the looming threat of climate change, the 2023 World Economic Forum is clouded with uncertainty

World Economic Forum delegates arrive at the Davos Congress Centre in Switzerland, on Monday. Reuters

Solar panels on the rooftop of the centre. Bloomberg

Swiss police on duty in the Swiss resort town. Reuters

A traffic jam on a road leading to the venue of the forum. Reuters

The Davos Congress Centre is the venue of the WEF's Annual Meeting. Reuters

Visitors queue outside Ukraine's pavilion in Davos. Reuters

Police officers on patrol. Bloomberg

A police officer stands guards and keeps a watchful eye from the roof of a nearby hotel. AP

Equipment at the Arctic Basecamp pavilion is checked before the start of the forum. Bloomberg

All eyes will be on Ursula von der Leyen, the European Commission President, who will deliver the first major address to this year's forum on Tuesday. Photo: WEF

The Russia-Ukraine war is one that is on the mind of officials and executives attending the WEF's Annual Meeting in Davos. Photo: WEF

Another shadow cast over Davos this week is that of the global economy, with the World Bank cutting its growth outlook for 2023. Photo: WEF

Officials and economists are expected to assess the severity of an expected global recession and find ways to mitigate its impact. Photo: WEF

Issues such as soaring food and energy prices worldwide and the outlook for Europe's economy will be front and centre. Photo: WEF

Another key feature is the presence in full of major technology companies. Photo: WEF

Tech executives are expected to highlight their companies' potential amid questions about the financial woes they faced last year. Photo: WEF

A visitor tries out a virtual reality headset at a pavilion before the start of the forum's Annual Meeting. Bloomberg

Security guards stand at an entrance to an inflatable tunnel at the venue in Davos. Bloomberg

People walk in front of the Davos Congress Centre on Sunday. AP

A display of artificial coral inside the Davos Congress Centre. AP

A banner above the steps to the Davos Congress Centre. AP

Police officers patrol the Davos Congress Centre in Davos. EPA

A sign goes up in the main hall of the Davos Congress Centre on Sunday. EPA

This will be the first full in-person meeting of the WEF since Covid-19 crippled much of global conferencing activity. EPA

Preparations in the main hall on Sunday. EPA

This year’s Davos theme is 'Co-operation in a fragmented world'. Photo: WEF

There will probably be concerns on the outlook for cryptocurrencies after the collapse of FTX. Photo: WEF

Delegates are also expected to discuss concerns about a new wave of Covid-19 variants. Photo: WEF

This is the 52nd Annual Meeting hosted by the forum. Photo: WEF

Staff put the final touches to one of the conference halls in Davos. Photo: WEF

“The question is, when will this war end?” This was what a senior official at a multilateral organisation asked me as I bumped into him walking up the Davos promenade on Sunday, on the eve of the start of the World Economic Forum’s Annual Meeting.

The question is one that is on the mind of officials and heads of businesses and banks as the one year anniversary of the Ukraine war is fast approaching. The question will not be answered in Davos this week, but will cast a shadow over the gathering.

From the impact on energy markets to issues of food security, the war will continue to shape the year. However, with Russia absent from the meetings, and with a strong Ukrainian and European presence, discussions will be focused largely on maintaining support for Kyiv. The Ukrainian first lady, Olena Zelenska, will participate in an online session run by the Victor Pinchuk Foundation, while a number of Ukrainian representatives are expected to be in sessions and events.

Another shadow cast over the Alpine town this week is that of the global economy, with the World Bank cutting its growth outlook for 2023 to 1.7 per cent last week, there are concerns over how the coming months will develop. While crypto is much more muted this year compared to the past few years, big banks are here in full force.

They will not be hosting ostentatious parties or displaying too much optimism as living costs rise in much of the world. In its own Global Risks Report, the World Economic Forum’s survey of global experts showed that the “cost of living crisis” is expected to be the greatest risk facing the world in the coming two years, followed by “natural disasters and extreme weather”.

However, over the next 10 years, experts see “failure to mitigate climate change” and “failure of climate change adaptation” as the two greatest risks. Climate change and the need for action has been a theme at the Annual Meeting in Davos for several years now, when Al Gore was the most vocal political voice on the issue. Now, it is one that is seen throughout the programme of this week’s meeting, with eyes set on the UAE hosting Cop28 later this year.

Another key feature ahead of the start of the Annual Meeting on Monday night is the presence in full of major tech companies. From Microsoft and Meta to Amazon and Zoom, tech executives are in town to show their companies’ potential while questions abound about the financial woes some big tech names faced last year.

This will be the first full in-person meeting of the World Economic Forum since Covid-19 crippled much of global conferencing activity. And while Covid-19 testing continues for all delegates, and participants are asked to remain at home if they are unwell, the sense is that this meeting is an opportunity to look past Covid-19 and towards the future. As China slowly opens up, and economies contend with more uncertainties, from automation to stagnation, this year’s will be an even more telling Davos Annual Meeting.