Bretton Woods led to an era of regulated globalisation from 1945 until the 1980s. There was a free-market form of globalisation leading up to the first world war, then a retreat during the inter-war period. The neoliberal driftĪ key question for this year’s conference, which is due to be followed by a second phase in Singapore in May, is whether a new form of globalisation will be developed. And now the pandemic is a huge economic and human disaster, with further such pandemics recognised as likely because of everything from the explosion in global travel to the effects of climate change.
The climate crisis is increasingly accepted to be an existential threat. Sadly, the main cause for optimism is the fact that today’s crises are so great that they may provoke action. The big hope is 78-year-old Joe Biden, who was US vice president for eight years during which many of these problems were mounting, not being solved. But this may prove difficult, given there is little change in corporate or government leadership. The WEF says the key is reestablishing public trust, which is “being eroded, in part due to the perceived mishandling of the coronavirus pandemic”. The WEF seeks action across seven key themes: environmental sustainability fairer economies “tech for good” the future of work and the need for reskilling better business healthy futures with fair access for all and “beyond geopolitics” - national governments collaborating globally. It follows their call to “ build back better” – one echoed by many around the world. It is the idea that global action needs to be underpinned by a mission to change society, to make it more inclusive and cohesive to match environmental sustainability with social sustainability. The WEF’s vision of a “ great reset” recognises that what is needed to tackle these crises goes far beyond economic reforms, or climate measures, or tackling a pandemic – it is all of these combined, and more. With only the 1940s seeing a really adequate response to global crises, what will make the difference this time? The great reset There was some tightening of regulation, but the threat of instability remains due to excessive debts and too much speculation. The 2007-09 financial crisis, which involved the first global recession since the 1930s, led to many calls for action to prevent similar crises in future. The Bretton Woods system endured until the early 1970s when the US came off the gold standard, but much of the system created in the 1940s survives in one form or another today. This was followed in the next couple of years by the United Nations and the forerunner to the World Trade Organization. This led to a new system of interlinked exchange rates organised around a gold-backed US dollar, as well as new institutions to help manage it, including the International Monetary Fund and what later became the World Bank. The allies met at Bretton Woods, New Hampshire, in the US in 1944 to develop policies for economic stability. When the world next sought to prevent future conflicts towards the end of the second world war, the lessons were to some extent learned from last time around. But this ultimately failed to deliver, with the UK’s insistence on post-war reparations undermining Germany’s economic recovery and political stability.įirst meeting of Assembly of the League of Nations in November 1920. After the first world war, the UK played a pivotal role in forming the League of Nations on the international stage.
This is not the first time that global crises have required global action, but there have been mixed results in the past. So how successful is the WEF’s mission likely to be? Lessons from history To give just one example, the COVID-19 mortality rate in England in December was over twice as high in the most deprived areas than the least deprived. This recognises that the effects of the pandemic are likely to be increasingly compounded by other major global threats, including the climate crisis, financial crises, and social and economic inequality. The event will be accompanied by virtual events in 430 cities across the world, to emphasise the fact that we face global challenges that require global solutions and action. “A crucial year to rebuild trust” is the theme, built around the “great reset” that World Economic Forum (WEF) founder Klaus Schwab and Prince Charles launched last year.
Inevitably, the event for the 1,200-plus delegates from 60 countries aims to respond to the apocalyptic events of the past 12 months. Whereas this is famously the annual gathering at the Davos ski resort in Switzerland of global leaders from business, government and civil society, this year’s event will take place virtually because of the pandemic. The 51st World Economic Forum starts on January 25, but with a major difference.
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