Davos: World leadership priorities in 2017

The global economy is changing, and so are the priorities of its leaders. Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, compares real leadership in today's complex and uncertain world to the ability to navigate according to both radar systems and compasses at the same time.

Illustration

"They must be receptive to signals that are constantly arriving from an ever-changing landscape, and they should be willing to make necessary adjustments; but they must never deviate from their true north, which is to say, a strong vision based on authentic values," says Klaus Schwab.

Leadership was one of the main topics of the World Economic Forum 2017 in Davos, Switzerland. The participating leaders of the world's governments, businesses and civil society discussed the issues of receptive and responsible leadership in the context of global cooperation, market capitalism, the restoration of the economic growth and the so-called Fourth Industrial Revolution.

Klaus Schwab summed up the most important priorities of world leadership for 2017 as follows:

1. Mastering the Fourth Industrial Revolution

All existing industries are changing, and entirely new ones are created given the enormous advances in artificial intelligence, robotics and nanotechnology. It's necessary to identify and solve the related global challenges.

2. More dynamic international cooperation

A more effective global system of cooperation between public and private institutions in order to deal with the current economic, technological, environmental and social problems should be developed. The existing form of international cooperation in this area dates back to the end of the Second World War.

3. Renewal of global economic growth

Reduced economic growth means a reduced standard of living. If the current stagnation continues, our children and grandchildren may be worse off than we are. Social inclusion and youth unemployment will become critical global issues in the shadow of the technological progress of 2017.

4. Reform of market capitalism

Another challenge for 2017 will be to restore the connection between business and society. The foundations of a permanent structure to achieve balance between economic incentives and social welfare should be created.

5. Solving identity formation crisis

The world is smaller, but more complicated due to globalization. Many people have lost trust in institutions as well as each other and fear for the future.

The formation of identity, like politics, is a process based on emotion that tends to overlook long-term needs. That is why nostalgic memories of better times and a return to national roots occur instead of long-term visions.

Responsible leaders must recognize people's fear and anger as a legitimate problem that should be addressed with a long-term vision of a better world that's shared by all of us.

-kk-

Article source World Economic Forum - organizer of the Davos meeting of political and business leaders
Read more articles from World Economic Forum