As the World Economic Forum (WEF) gathered in Davos, Switzerland, for its 56th annual meeting, the attendance of former US President Donald Trump highlighted the growing divide between the global elite and the populist forces shaping the world order. Trump, a figure the Davos crowd “loves to hate,” delivered a rambling speech that underscored his disdain for the very principles the forum claims to uphold.
Trump’s protectionist stance, climate change scepticism, and disregard for multilateral institutions put him at odds with the “woke capitalism” that Davos has sought to promote in recent years. The WEF organisers were forced to sideline issues like gender equality and ethical investment in order to secure Trump’s appearance, a concession that speaks volumes about the shifting political landscape.
The liberal, rules-based international order that has underpinned the global economy since the Second World War is now under threat from both internal and external forces. Emerging economies like China, India, and Brazil are increasingly resistant to the terms dictated by the US and its Western allies, seeing little merit in a system weighted in favour of the rich, developed nations.
The decline of US hegemony, coupled with Europe’s economic stagnation and reliance on American security, has further eroded the foundations of the post-war order. As the rich grow richer while the middle class struggles, the legitimacy of this system is being called into question.
Reforming the outdated institutions like the International Monetary Fund (IMF) and the World Trade Organization (WTO) will be crucial to building a more inclusive and sustainable global order. This will require faster and more equitable economic growth, substantial investment in public infrastructure, and greater financial assistance for developing nations to tackle the climate crisis.
However, the path forward is not straightforward. As Canadian Prime Minister Mark Carney warned in Davos, “the old order is not coming back.” Replacing the narcissistic Trump will not be enough; the structural reasons behind the collapse of the rules-based system must be addressed. The global elite gathered in Davos may be forced to confront the reality that the world they have long championed no longer exists.
