WORLD ECONOMIC FORUM 2020
• Commerce minister Piyush goyal is leading the Indian delegation to the 50th WEF ( World economic forum) at Davos, Switzerland.
• Goyal will also participate in an informal WTO inter ministerial gathering being held in the same city.
• The union minister will also hold bilateral meetings with ministers of Australia, South Africa, Russia, Saudi Arabia, Switzerland and South Korea as well as Singapore.
• He will also meet director general of WTO and secretary general of the organization for economic co-operation and development.
• The 50th Edition of WEF will focus on establishing capitalism as a way of addressing the worlds greatest challenges from the societal divisions created by income inequality and political polarization to the climate crisis the world faces today.
• The WEF provides a platform for CEO's of companies around the world to meet and discuss business. For more than a decade finance ministers of countries have also been attending the event.
• It provides a platform for the govt. to bring in potential investors from around the world.
• It also provides stage for government to showcase it's reforms and achievements to attract business.
• the Union minister has told that he will focus on five P's at WEF which includes –
o power of democracy o power of demography o power of opportunity o power of talent o power of leadership
• for the past few years director general of World trade organization ‘pascal lami’ who started the system of having meetings of all the ministers at informal level.
• The biggest challenge that the world faces today is protectionism and it is in this backdrop that the 50th meeting in is being held. it is one of the main challenges for WEF.
• The theme for this year’s forum is “cohesive and sustainable development”.
• However, the game has also changed in world order, liberal America is behaving more in a protectionist way then ever before and China is emerging out to be a champion of liberal economic agenda.
• India has a strong presence in the forum since 1991. but this time India faces a slow growth rate. Therefore, importance of such forums has increased.
• Key expectation for India is that how much FDI it can attract. And in today’s world FDI rides on technology which is also one of the six key points for this years forum.
• The six key points are-
o Economy o Technology o Ecology o Society o Geopolitics o Industry
• Slowing down of major economy in the world will have an impact on this year's forum.
• The world leaders will also have to talk about how to control trade and investment flows in the backdrop of US-China trade war.
• The World trade grew by only 1.5% in 2018- 19 which is new kind of low in past decade and is also a challenge for WEB.
• focus will be on US President Donald trump as to how he reacts to climate concerns as climate activist Greta Thunberg will also be present in Davos.
• it also remains to see how the US President reacts to the prevailing economic environment in the world in the backdrop of being protectionist himself.
• India will have to project its positive image to the CEO and other ministers be it in the terms of ease of doing business or corporate resolution methods.
• as far as manufacturing sector is concerned we have not been receiving FDI as per with its potential India's focus will be on that aspect as well including reforms at domestic level.
• Finally it is exports that will help us grow faster and realize the 5 trillion economy dream therefore India will have to take a clear stand with regard to protectionism by focusing on our manufacturing sector exports.
• Indian state governments have a major role to play in this regard by focusing on better infrastructure Les off regulations and land and labor laws etc.