Global Agenda Annual Meeting 2018 Creating a Shared Future in a Fractured World

Davos-Klosters, 23-26 January Contents Preface

3 Preface More than 3,000 leaders from over 100 countries came together to focus on finding ways to reaffirm international cooperation on crucial shared interests, such as the environment, the global economy and international security in the 4 Our Co-Chairs spirit of the theme of the 48th Annual Meeting, Creating a Shared Future in a Fractured World. This report summarizes some of the insights from more than 6 Highlights and key outcomes 400 sessions in the official programme, as well as outcomes from over 200 working sessions organized by Forum communities. of the Annual Meeting The Annual Meeting was truly a “summit of summits” with unprecedented participation from government leaders including nearly 70 heads of state or Klaus Schwab 10 Driving sustained economic government and more than 30 heads of major international organizations. It Founder and progress notably began with an opening address by Narendra Modi, Prime Minister of Executive India and closed with a special address from Donald Trump, President of the Chairman United States of America. Close to 2,000 leaders from industry were also joined World Economic 16 Navigating a multipolar and by over 800 of their peers from academia, civil society, faith-based and religious Forum multiconceptual world groups, labour organizations, the media, the arts and the world of social entrepreneurship.

22 Overcoming divisions in society Twenty one percent of participants this year were women; the highest proportion ever recorded at any Forum Annual Meeting. In this regard, the Forum continues to work throughout the year to highlight the gender gap 28 Shaping the agile governance and develop strategies to help women achieve positions of senior leadership. of technology Its efforts benefitted greatly from an exceptional cohort of Co-Chairs at the meeting, who represented the pinnacle of accomplishment across academia, business, civil society and government. They included: Sharan Burrow, General 40 Davos moments Secretary, International Trade Union Confederation (ITUC), Belgium; Fabiola Gianotti, Director-General, European Organization for Nuclear Research (CERN), W. Lee Howell ; Isabelle Kocher, Chief Executive Officer, ENGIE, ; Christine Managing 43 Acknowledgements Lagarde, Managing Director, International Monetary Fund (IMF), Washington Director, Head DC; Ginni Rometty, Chairman, President and Chief Executive Officer, IBM of Global Corporation, USA; Chetna Sinha, Founder and Chair, Mann Deshi Foundation, Programming 44 Further information India; and Erna Solberg, Prime Minister of Norway. The diversity at the Annual Meeting also extended beyond gender and geography to include the younger generation. Fifty members of the Forum’s Global Shaper community, aged between 20 and 30, as well as 80 Young Global Leaders under the age of 40, actively participated in all sessions.

We hope this report stimulates further thinking on how to create a shared future for all. We gratefully acknowledge our Partners, Members and participants, as well as the Meeting’s Co-Chairs, for their leadership and guidance throughout the event. With their support, the Annual Meeting also achieved a key milestone with its independent certification as meeting the international standard for World Economic Forum sustainable event management, ISO 20121. 91-93 route de la Capite CH-1223 Cologny/Geneva Switzerland On behalf of the Managing Board, we thank you for carrying on the spirit of Tel.: +41 (0)22 869 1212 Davos as we work together in the coming year. Fax: +41 (0)22 786 2744 Email: [email protected] www.weforum.org

World Economic Forum ®

© 2018 – All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, including photocopying and recording, or by any information storage and retrieval system.

REF 060218

Creating a Shared Future in a Fractured World 3 Our Co-Chairs Public Engagement with the World Economic Forum Annual Meeting

Sharan Burrow General Secretary, International Trade The World Economic Forum reaches hundreds of millions of Union Confederation (ITUC), Brussels people with stories about complex global issues

225,000 stories about the World Economic Forum appeared in the global press during Fabiola Gianotti Director-General, European January 2018, over 25% more than 2017 Organization for Nuclear Research (CERN), Geneva

6 million individual unique visitors to the World Economic Forum's Isabelle Kocher website during the week of Davos Chief Executive Officer, ENGIE, France; International Business Council

The world’s most influential people shared World Economic Forum content on their social media channels – including French President

Emmanuel Macron, UK Prime Minister Theresa May, German Chancellor Angela Merkel, Indian Prime Minister Christine Lagarde Managing Director, International Narendra Modi, Canadian Prime Minister Justin Trudeau, and US President Donald Trump. The combined potential reach Monetary Fund (IMF), Washington DC; Member of Board of Trustees of the of all the accounts who shared Forum content is over 1 billion. World Economic Forum

Ginni Rometty Chairman, President and Chief Executive Officer, IBM Corporation, USA; During the week of Davos, more than minutes of Forum-produced video were watched by members of the global public, over International Business Council 33 million 50 million individual video streams.

Chetna Sinha Founder and Chair, Mann Deshi Foundation, India; Schwab Foundation Over 150 Davos participants answered a direct question from the global public, Social Entrepreneur posted to Instagram using the #sharedfutures tag

Erna Solberg Prime Minister of Norway

21 million views of over 200 sessions streamed from our website, on Facebook, and in 6 languages

4 Creating a Shared Future in a Fractured World Highlights and key outcomes of the Annual Meeting

Mending our fractured world Systems leadership

Justin Trudeau, Prime Minister of Canada, announced Denmark became the first European country to partner Preparing workers for the future: A Forum report Tackling waste and pollution: Leaders from some of that Canada will double its commitment to the Global with the World Economic Forum. The scope of the published during the meeting, Towards a Reskilling the world’s largest companies, such as Alphabet, The Partnership for Education Fund, providing an extra $180 agreement will see Denmark collaborate closely with the Revolution, provides the guidance needed to find Coca Cola Company, Royal Philips and Unilever, teamed million to the fund between 2018 and 2020. Forum in a number of areas, including promoting green new, gainful employment for the millions of workers up with the governments of Indonesia, Nigeria, the growth, trade and education, gender and work. Denmark expected to lose their jobs due to technological change. People’s Republic of China and Rwanda and international Alexis Tsipras, Prime Minister of Greece, and Zoran will also partner with the Forum’s Center for the Fourth Separately, the Forum announced two initiatives that will organizations to form the Platform for Accelerating the Zaev, Prime Minister of the former Yugoslav Republic of Industrial Revolution in San Francisco as it works to have a direct impact on workers: Closing the Skills Gap, Circular Economy (PACE). The platform aims to tackle Macedonia, held the first meeting at prime-minister level design governance principles to shape the technologies a global, business-led scheme that aims to deliver new issues including electronic waste and plastics pollution for seven years. The discussion led to a framework being of the future. skills to 10 million workers by 2020; and the IT Industry by going beyond the 9% of waste that is currently cycled agreed to intensify the negotiations on an end to the Skills Initiative, whose SkillSET portal aims to reach 1 back into the economy after use. naming dispute, which is being presided over by the UN. Closing the Gender Gap: Peru became the fourth million IT workers by 2021. country in Latin America to adopt the Forum’s Closing Unlocking nature’s value: A new plan was announced In addition to the West Balkans, the Forum’s the Gender Gap model, following earlier adoption in Safeguarding our oceans: A new multistakeholder to mimic the success of the human genome map series of Diplomacy Dialogues has committed Chile, Argentina and Panama. Five additional countries initiative, the Friends of Ocean Action initiative, was by sequencing the DNA of all life on earth. Under the to supplementing ongoing multilateral efforts in are considering adoption over the course of 2018. launched with the aim of delivering an “Ocean Action auspices of the Forum’s Fourth Industrial Revolution for the Korean Peninsula, Venezuela, sub-Saharan Track” to protect and conserve oceans, seas and marine the Earth initiative, two projects, the Earth Bio-Genome Africa and Somalia. Bridging the digital divide: Mercedes Aráoz, Prime resources. The partnership was announced by Isabella Project (EBP) and the Earth Bank of Codes will, if Minister of Peru, announced plans to launch an Internet Lövin, Deputy Prime Minister of Sweden; and Peter successful, help avert extinction as well as tackle bio- Looking to the Middle East and North Africa region, a for All programme in 2018. Thomson, UN Special Envoy for the Ocean. Marc Benioff, piracy and habitat loss by unlocking value from nature’s Forum community of Israeli and Palestinian business Founder and Chairman of Salesforce.com, announced biological and biomimetic assets. leaders met at the Annual Meeting to renew their Taking on fake news: A new joint venture funded by $4.5 million in funding through the Benioff Ocean Initiative commitment to the two-state solution and pledge their the Craig Newmark Foundation in collaboration with to support the new initiative. Secure air travel: The Forum was joined by the support to strengthening the Palestinian economy given the World Economic Forum was launched. Bringing Government of Canada in launching a Known Traveller the opportunity of the Fourth Industrial Revolution. internet platform giants together with multistakeholder Making meat sustainable: A new Forum initiative, Meat: Digital Identity prototype to test emerging technologies leaders, the initiative will be developed further through The Future will identify ways to transform the future of such as biometrics and distributed ledger technologies In the same region, the Forum also formed a new 2018. Meanwhile, a joint venture launched by Internews meat and protein production to deliver safe, affordable that could facilitate more secure and seamless air travel. community of businesspeople who have committed to in collaboration with the Forum aimed to promote high- and sustainable protein in the face of rapidly growing advise and support Haider Al Abadi, Prime Minister of quality local news and information. global demand. Iraq, on the reconstruction of the country.

6 Creating a Shared Future in a Fractured World Creating a Shared Future in a Fractured World 7 Advancing the Fourth Industrial On the Forum’s platform for Revolution Public-Private Cooperation

Governing the Fourth Industrial Revolution: The Ethical science: The Forum’s community of Young Developing antibiotics: Netherlands-based Access Community health: The CEOs of Last Mile Health Living Forum’s Center for the Fourth Industrial Revolution, Scientists launched an interdisciplinary Code of Ethics to Medicine Foundation published the world’s first Goods announced a $50 million collaboration to deploy which opened in March 2017, expanded with a number for Researchers aimed at safeguarding high standards of antimicrobial infection benchmark, which encourages 50,000 community health workers to deliver quality care of new partnerships. New centres will be added to the behaviour and clarifying social norms to allow scientists greater research and development for new-generation door-to-door to 35 million people. Working with African network in India, and the United Arab Emirates. to operate independently. antibiotics. governments, the initiative will use mobile technology Additionally, Bahrain, Denmark, the Inter-American to empower community health workers more cost- Development Bank and the United Kingdom joined as The Government of Saudi Arabia signed a Letter of Mental health: CitiesRise, an initiative aimed at improving effectively than deploying doctors or nurses. partners alongside Deutsche Bank, Dubai Electricity and Intent to partner with the World Economic Forum. The provision for affordable mental health support for young Water Authority and GAVI, the Vaccine Alliance. scope of the agreement covers the Forum’s System people, was launched with the support of public- and Culture: At the invitation of Swiss President Alain Initiatives, the Global Centre for Cybersecurity and the private-sector leaders in Kenya, Lebanon, Colombia, the Berset, Europe’s ministers of culture gathered in Tackling the cyber threat: In response to the fastest- Center for the Fourth Industrial Revolution. United States and India, and supported by Philips, the Davos on 21 and 22 January. They discussed ways emerging global risk of our times, the Forum announced World Health Organization, the World Bank and Harvard in which Baukultur for a better quality of life can be the launch of a Global Centre for Cybersecurity, a University. CitiesRise aims to reach 1 billion young people anchored in Europe, both politically and strategically. multistakeholder platform aimed at creating a safe by 2030. operating environment for new technologies like artificial Fighting financial crime and modern slavery: Thomson intelligence, robotics, drones, autonomous vehicles and Valuing waste: Chile became only the second country , Europol and the Forum are partnering to tackle the internet of things. in the world to implement a national plan to move money laundering and trafficking in human misery. The to a circular economy. The scheme is the result of a partnership will aim to raise greater awareness among Accelerating innovation: The Forum launched partnership between TriCiclos and the Ellen MacArthur global leaders, promote more effective information- its UpLink initiative as a platform to connect start-ups Foundation. sharing and improve compliance best practices. with multinational businesses, investors, universities, governments and other investors. To kick-off the Relief and reconstruction: The International Trade Union Empowering women entrepreneurs: The Mann Deshi platform, a collaboration with the International Finance Confederation teamed with US renewable energy firms Foundation, a rural Indian cooperative bank run by and Corporation (IFC) will see 50 outstanding start-ups Sesame Solar, SimpliPhi Power and Outback Power to for women established by the meeting’s Co-Chair Chetna from Latin America invited to participate at the World deliver off-grid power to affiliates in Dominica along with Sinha, announced the launch of a Rs100 million fund to Economic Forum on Latin America in Brazil in March. emergency supplies and aid. encourage more women at the bottom of the pyramid to become entrepreneurs. Rwanda: The Government of Rwanda became the first Football fund: Common Goal, co-founded by footballer country to adopt performance-based regulation for all Juan Mata, was launched as a programme aiming to Addressing up to gender bias: The Forum’s Global drones following a collaboration with the Forum’s Center break the cycle of poverty for 2.5 million people around Shapers Community teamed with Procter & Gamble to for the Fourth Industrial Revolution. The new approach the world. The plan has so far signed up 35 footballers to raise awareness among young people about gender is aimed at simplifying procedures to encourage faster pledge 1% of their salaries to charities that use football as equality. The partnership will include a social media adoption of drone technology and greater deployment of a tool for social change. campaign and a $100,000 grant challenge to support drones for innovative uses. grassroots, youth-led solutions.

8 Creating a Shared Future in a Fractured World Creating a Shared Future in a Fractured World 9 Driving sustained economic progress Developing new ways to measure “Working-age people, especially the a company’s long-term vision and positive social impacts could give firms young, are falling behind. Without more space to prioritize environmental action, a generation may never be able Better metrics, better narratives sustainability and provide a decent to recover.” quality of life for workers. Christine Lagarde, Managing Director, International Monetary Fund (IMF), Washington DC for sustainable growth The World Economic Forum has developed a broader measure of national economic performance than simply GDP. Named the Inclusive Recent economic growth suggests a positive outlook for the global Development Index, it places greater sustainability into economic prosperity and reducing poverty among children emphasis on the standard of living of goals. President Emmanuel Macron of as policy goals for achieving more economy, yet macroeconomic statistics mask major challenges related to households than on quantifying the France, in his address at the Annual balanced economic growth. production of goods and services. The Meeting, committed to closing all inequality, social exclusion and climate change. How can government and development of better metrics could coal-fired power stations by 2021 Social safety nets ensure that nations business leaders meet these challenges? help focus the attention of companies, and to making his nation “a model can care for at-risk populations; policy-makers and the public on areas in the fight against climate change”. therefore, such programmes provide of society most in need of attention. China, too, has taken a leadership a backbone for inclusive growth. role in reducing carbon emissions. However, ballooning pension and Some of the biggest success stories in The nation accounts for 40% of global healthcare expenses have caused today’s economy are tech giants that investments in renewable energy. many countries to determine that grew from being garage start-ups into spending levels on social protection billion-dollar companies. The Silicon As the era of “easy money” comes programmes are unsustainable. The global economy has recovered in the 1930s to measure a nation’s Another force of change is automation, Valley model of technology company to an end, there is even greater Changing social spending typically since the 2008 financial crisis and the economic production and was never which could replace nearly half of has presented an enticing example urgency to address underlying social requires unpopular political choices, International Monetary Fund predicts intended as a proxy for economic all jobs by 2055, according to some to innovators and policy-makers and environmental challenges. For but reforms are necessary to protect that the outlook for growth for the next health. analysts. Machine learning and around the world seeking to promote nearly a decade, quantitative easing retirement payments as well as care two years continues to be a promising artificial intelligence could increase innovation. However, a cluster of firms programmes in the United States, for the poor and elderly in the years 3.9%. Many financial indicators give Globalization and technology are the efficiency of production, reduce now controls an outsized share of Europe and other nations have ahead. reason for optimism. The total market among the forces that demand a the need for monotonous work and internet traffic, data collection and injected trillions of dollars into the capitalization of listed companies has rethink of the traditional focus on even transform industries. However, online activities, which has caused global economy. Many countries are One way to claw back lost government more than tripled in the past 20 years GDP growth. In today’s global supply the disruption to workers’ lives will some to worry about the risks of tech seeking to end these programmes, revenue is to consider elimination and corporate profits continue to rise. chains, production often takes place be significant. Reskilling and training monopolies. raise interest rates and tighten of tax havens. The existing tax across borders. Technology could programmes are essential to prepare monetary policy. The time is now to system has allowed companies and However, peeling back the top-line further integrate markets and connect workers for the next generation of While the traditional start-up model prepare the policy groundwork for individuals to stash over $7.6 trillion positive trends reveals challenges small producers in different nations. employment challenges. has created elegant solutions long-term change. in tax havens, denying governments related to lack of inclusion and “In the future, there will be no ‘made to developed-world problems, access to revenue that could be environmental sustainability. For in China’, no ‘made in the [United New measurements are needed to innovations are desperately needed to One way countries can harness used to enhance social protection. example, 82% of the wealth created in States]’, no ‘made in Peru’,” said Jack track the progress of nations and address the problems of low-income untapped potential in their economies Yet tackling offshore tax shelters is a 2017 went to the top 1% of the world’s Ma, Executive Chairman of Alibaba. companies, focus on economic populations, such as lack of access is to consider demographic global problem that requires global population. And even as corporations “It’ll be made on the internet.” inclusion and hold people accountable to water, inconsistent power grids and advantages. Women, for example, coordination. prosper, wages in many parts of the for results. For example, “short- deforestation. Pilot programmes that are severely underrepresented in world remain flat. Meanwhile, only half Technology is changing not only the termism” puts pressure on companies involve underserved communities in ASEAN’s workforce. Promoting female “It’s not just about euros, yens and of Africa’s population has access to nature of production but also the to deliver quarterly returns at the developing their own solutions – such inclusion could be a major engine of dollars,” said Winnie Byanyima, electricity. way people work and define labour. expense of socially beneficial goals as providing “innovation rooms” in economic growth and social inclusion Executive Director of Oxfam Opportunities in the “gig economy” and bolder, long-term projects. Many urban communities – can result in for the region. Both policy changes International. “It’s about human Income inequality demonstrates the have helped many young people find large investors have acknowledged products that are better tailored for and technology can reduce barriers rights.” And global justice demands pressing need for a new model of flexible incomes, but those jobs often that companies should pursue broader that community. that keep many women working in that policy-makers, business leaders economic growth that is not centred come with the trade-off of few benefits social missions than simply “greed is the unpaid “care economy” rather and civil society come up with better solely on measures of GDP. Gross and little job security. good”. However, investors still tend “It’s not about chasing the next billion- than earning incomes in the formal models for a future of more inclusive, domestic product was developed to interpret “fiduciary responsibility” dollar company,” said Badr Jafar, economy. balanced growth. as assessing earnings reports and Chief Executive Officer of Crescent balance sheets because those tools Enterprises. “It’s about changing and Canada has taken policy steps to are the most reliable, standardized nurturing those companies that impact promote inclusive growth. It welcomes “We must ensure the Fourth Industrial way of comparing companies. a billion people.” more than 300,000 immigrants a year, including refugees, which helps Revolution unfolds with humanity at its Some countries are taking leadership balance counterbalance against the centre, not technology.” roles in pioneering new models of nation’s ageing population. Canada Klaus Schwab, growth and integrating environmental has also prioritized gender equity Founder and Executive Chairman, World Economic Forum

10 Creating a Shared Future in a Fractured World Creating a Shared Future in a Fractured World 11 Reducing generational inequality 1: Paolo Gentiloni, Prime Minister of Italy; Victor 1 Halberstadt, Professor Unemployment rates have declined in many parts of the world from post-financial crisis highs. But this of Economics, Leiden University, Netherlands macro improvement hides a worrying trend of persistent youth unemployment and underemployment in many parts of the world. In the Middle East, youth constitute more than half of the population, but a lack of economic opportunity has caused political unrest and even driven some to join terrorist organizations.

While the statistics are less dire for Europe, still, one in five young people cannot find work and the 18- to 25-year-old demographic carries the highest burden of debt relative to assets. Many of the opportunities that do exist lie in the “gig economy,” offering flexible, short-term but largely unstable employment. Youth unemployment differs structurally from unemployment at more advanced ages. “Lost wages, lost savings, can be extremely difficult to recover later in life,” said Christine Lagarde, Managing Director of the International Monetary Fund.

Fortunately, governments have a menu of options for reducing generational inequality. Wealth and inheritance taxes can ensure that accumulated assets of older generations help support younger demographics. Labour market policy, such as raising the retirement age, could help societies adjust to longer life expectancy and the expense of pension systems. Finally, job training and education programmes that prioritize digital literacy can better prepare today’s youth for tomorrow’s job market.

12 Creating a Shared Future in a Fractured World Creating a Shared Future in a Fractured World 13 3 4

5

1

2

1: Justin Trudeau, Prime 3: Emmanuel Macron, Minister of Canada; President of France Malala Yousafzai, Girls’ 4: Theresa May, Prime Education Activist and Minister of the United Co-Founder, Malala Kingdom Fund, United Kingdom 5: Angela Merkel, Federal 2: Narendra Modi, Prime Chancellor of Germany Minister of India and 6: Donald J. Trump, Klaus Schwab, Founder President of the United and Executive Chairman, States of America World Economic Forum 6

14 Creating a Shared Future in a Fractured World Creating a Shared Future in a Fractured World 15 Navigating a multipolar and multiconceptual world “We need to look at what needs to be Make the most done for the international community to embrace us. Capital goes to where it is of the European Humanity needs a new narrative most comfortable.” opportunity Emmerson Mnangagwa, President of Zimbabwe Europe is increasingly looking like for global cooperation the last best hope for open, liberal, rules-based globalism. Things are looking up in the continent, or at technologies – whether strategic people around the world, but many least, things are not looking so dire. minerals like cobalt and lithium, or that people from less developed countries The appeal of liberalism is by no means exhausted. But as rival power The Eurozone has weathered an most vital, precious resource in this have demonstrated a real willingness existential crisis and while consensus age of the Fourth Industrial Revolution: to compromise – persuaded, tacitly, centres offer persuasive alternative models, Western democracies need to on how to address another debt data. that surrendering some personal crisis still eludes the European Union, tell a more compelling story – one that is inclusive, far-sighted, and above all, liberty for some personal safety does under current conditions of recovery, The new narrative that those leaders not, as the American revolutionary empathetic. stability and lower unemployment, committed to globalism must now axiom would have it, make one Europe has gained some time. craft has to be compelling to the deserving of either liberty or safety. middle- and lower-class voters, as The election of Emmanuel Macron Canadian President Justin Trudeau Above all what is needed is cognitive and the re-election of Angela Merkel, and French President Emmanuel empathy. Cognitive empathy differs and the EU – or at least its Franco- Macron both said in their respective from the more familiar emotional German core – have survived, for special addresses at the Annual empathy – that reflexive innately now, the tidal wave of populism. The Despite a wave of populism and a underestimation of the enduring on strong. Russia, for its part, has Meeting. human ability to feel how others EU has survived Brexit, insofar as resurgence of nativism, liberalism is mental hold of various tribalisms. demonstrated the willingness to might feel. Cognitive empathy there have been no further exits. And not dead. However, it has suffered Economic recovery and recent growth aggressively contest, often through “Unless I give a meaning to requires knowledge: knowledge of while there is much that separates some stinging reverses. The good have bolstered confidence, but growth asymmetrical means, American globalization, and unless I can explain the historical experience and present Western from Central Eastern Europe news is that many among the leaders alone is no panacea. A new narrative power – and an eagerness to see off to people that it will help their lives in circumstances of the other, of the – in attitudes toward immigrants and and intellectuals still committed to is desperately needed. American hegemony. 10 to 15 years, then that will give rise other’s core beliefs and assumptions. refugees, in the relative power of liberalism's core values and institutions to nationalists and they will win, and It must be learned and consciously populist and nationalist parties – the are determined to learn from these To navigate this multipolar and If navigation is made difficult they will win in every country,” warned developed. But it does not demand core, founding continental EU states, setbacks, especially in the face of multiconceptual world, it is important by the persistence of American Macron. that one’s own values and beliefs at least, enjoy remarkable cohesion new challenges brought on by rapid to first reckon candidly with the exceptionalism and a refusal to be abdicated and it is not mere and alignment. technological, demographic and contested nature of geopolitical recognize the multipolar shift, it However, the new narrative also has moral relativism. Done right, it is an climatological changes. power in all its dimensions: economic, is made still more difficult by the to convincingly address the questions invaluable tool in devising strategies The year 2018 may prove to be, as technological, military, cultural and abruptness of American withdrawal that the Fourth Industrial Revolution and approaches that actually work. Bruno Le Maire, France’s Minister The self-criticism dominating so social. For many in the developed under the current administration. poses – about the nature of work, It is indispensable to navigating the of Economy and Finance said, “a much discourse within the liberal West, and especially in the United It leaves a dangerous vacuum of about finding purpose and meaning multipolar, multiconceptual world in European year”. cognoscenti since the political shocks States, this first step is not an leadership that cannot readily be in a world where employment, which which we now live. of 2016 has sometimes descended easy one. The US has not, since filled. Countries like China, through has for so long served as the focus The Trump administration’s into self-flagellation. However, the end of the Second World War, laudable initiatives such as the Asia and the pillar of individual dignity, withdrawal from multilateral trade through this process, the outlines shared the global stage with a truly Infrastructure Investment Bank and fundamentally changes. It needs organizations provides space of consensus have emerged: that multidimensional peer until very especially the ambitious Belt and to address the power accrued by for greater European leadership the force of the liberal narrative has recently. China must now be viewed Road Initiative, may be creating public data-driven technology giants. It in trade. President Macron of been blunted and diminished by the as bona fide contestant, if not yet a goods in the world. But they cannot needs to answer essential questions France, for instance, announced failure of developed states to deliver true peer. Its developmental model – be expected to immediately supplant about humanity in an age when at the Annual Meeting that he had equitable and inclusive growth; that rapid urbanization, heavy infrastructure American stewardship – and they strip trans-humans, enhanced by genetic signed agreement with the other the West has paid the price for its investment, aggressive exports and out some of the values that the US engineering, bionics, or advanced 10 members of the Trans-Pacific complacency, for its poor memory a strong authoritarian state – has and its allies, in creating those public robotics, will inevitably be among us. Partnership (TPP) to create a of its own history, its equally poor understandable appeal in much of goods, had infused them with. “Comprehensive and Progressive appreciation for the history of other the global South. India, bolstered by The multiconceptual nature of the TPP” – a “CP-TPP” that will countries and regions; and for its favourable demographics, is coming To successfully navigate this new world – secular states and states bolster environmental and labour multipolar world, leaders must be grounded in religious traditions, requirements for TPP members. alert to how new geopolitical tensions pluralistic and authoritarian polities, will inevitably rise over control of multi-ethnic countries and “ethno- “Anything that is routine or repetitive The EU nations have a leg up as they the vital resources of a world now states” – makes navigation much more face new global realities. However, will be automated.” being reshaped by powerful new challenging still. What the liberal West Minouche Shafik, Director, London School of Economics the danger is apathy – a failure to has enshrined as universal values may and Political Science, United Kingdom seize the European opportunity and indeed represent the aspirations of to strike while the iron is hot.

16 Creating a Shared Future in a Fractured World Creating a Shared Future in a Fractured World 17 1: Michel Temer, President of Brazil 2 2: The Loft 3: Will the Future Be Human?

1

1

2 3

3

4 5

1: Masterworks: Finding Konrad Steffen, Director, Focus Professor in Climate and 2: Tolu Oni, Associate Cryosphere, ETH Zurich, Professor, School of Switzerland Public Health and Family 5: The Promise of Medicine, University of Precision Medicine Cape Town, South Africa 3: His Majesty King Felipe VI, King of Spain 4: Christiana Figueres, Convenor, Mission 2020, Switzerland;

18 Creating a Shared Future in a Fractured World Creating a Shared Future in a Fractured World 19 1: Juan Manuel Santos, 6: Rejuvenating 10: Jodi Halpern, President of the Republic European Democracy Professor of Bioethics 7 8 of Colombia 7: Alain Berset, President and Medical Humanities, 2: Jim Yong Kim, of Switzerland University of California, President, World Bank, 8: Intelligent Cyber- Berkeley, USA Washington DC Physical Systems 11: Isabelle Kocher, Chief 3: Yemi Osinbajo, Vice- for Health with Executive Officer, ENGIE, President of Nigeria Massachusetts Institute France; Chetna Sinha, 4: Harnessing the Fourth of Technology Founder and Chair, Mann Industrial Revolution for 9: Gillian R. Tett, Deshi Foundation, India, the Earth Managing Editor, US, 5: Alexis Tsipras, Prime Financial Times, USA Minister of Greece

12 3

1

4 5 9

6

10 11

20 Creating a Shared Future in a Fractured World Creating a Shared Future in a Fractured World 21 Overcoming divisions in society requires every government policy, “We have to make it easy for our firms including the budget, to be scrutinized from a gender perspective. to have digital knowledge.” Mercedes Aráoz, Prime Minister of Peru Healing fractured societies will While such measures may heal some social divisions, do these changes go fast and deep enough? Many take empathy and generosity people in the US and the UK voted the way they did out of fear for their jobs – threatened in their minds by climate change-driven cuts to the the figure is under 1%. In 1820, 90% Creating work is equally important. Life expectancy is rising, child mortality levels are lower and fewer people live carbon economy and vulnerable to of the world lived in extreme poverty; “When there are jobs and a sense of the onward march of automation and today it’s less than 10%. security in the future, dialogue is more in poverty. However, pervasive inequality has driven huge fault lines in global artificial intelligence. In such turbulent likely to be successful,” she noted. times, ordinary people crave certainty. These statistics, however, are scant societies, rapid social change is challenging traditional values, and national Business leaders and politicians need comfort for war-torn populations Healing divisions in societies can identities and accelerating technologies are threatening jobs. How can the to deliver clear policies and priorities to in Syria, Iraq, Yemen, Afghanistan only succeed through a combination demonstrate how the Fourth Industrial or sub-Saharan Africa. For them, of hard and soft power. The world’s gaps be closed? Revolution offers rewards and not just reconstruction of both the physical wealthiest need to find a way to risks for ordinary people. and social fabric is vital. It will share out the fruits of technological take an estimated $100 billion to change and globalization more Academics and media also have a role rebuild Iraq and three times that generously. Business, political in healing social divisions. For Steven for Syria. We cannot forget how and civil society leaders must be Pinker, Professor of Psychology at the most destructive and divisive courageous in embracing inclusion In 2016, the world heard a “primal The problem is, according to Zanny out on social and political issues. , populism is a terrorist movements of the past two and diversity. But when faced with scream of grievance”, said John Minton Beddoes, editor of The Driven partly by the erosion of public result of a sense of hopelessness and decades – the Taliban, Al-Qaeda and extremist or discriminatory views, Harris, Editor of Politico, as Britain Economist, “the dissatisfaction in the trust in corporations, chief executives pessimism in the face of relentless Daesh – all emerged out of war-torn Hochschild called on us to engage in voted to leave the European Union and economic system is not going away”. see rebuilding relationships with bad news. Pinker points to the societies. “The West and the rest compassionate dialogue with those Donald Trump triumphed in the US The fruits of the massive technological civil society as a priority. “Business Enlightenment values of reason, need to see that it’s in their national we disagree with most. She spoke polls. In both electorates, voters felt innovations of the 21st century “are is more than the bottom line,” says science, humanism and progress as a security interest to rebuild the region,” of crossing an “empathy bridge” in propelled by a sense that the system going to a small group of people, Paul Polman, Chief Executive Officer vital antidote to the fatalism that drives says Majid Jafar, CEO of Crescent her journey towards a deeper, more was rigged against them. Working most of whom are here”, she told of Unilever. “Issues such as climate people to seek answers from tribal, Petroleum. sensitive human interaction. classes felt threatened by immigrant participants in Davos. change, human rights and child labour religious or nationalistic leaders. labour and the march of high tech. all influence what we do and how we Rebuilding societies will be Artists are uniquely placed to build Nationalists felt uneasy sharing their Statistics back her up. The globe’s do it.” He added: “Our workers and Reason and science demand considerably tougher than pouring bridges between divided individuals shores with foreigners or having richest 1% own half the world’s wealth, customers expect us to take a stance that we resist the temptation to concrete, but there are leaders in the and societies. For Yo Yo Ma, the laws foisted on them by Brussels their share rising from 42% in 2008 on such issues.” generalize from anecdotes, argue Middle East who embrace a humanist cellist and founder of the collaborative bureaucrats. And many ordinary to 50%, or $140 trillion, in 2017, says from stereotypes or swallow doctored approach. Qubad Talabani, Deputy Silk Road music ensemble, the key folk simply felt ignored by the ruling Credit Suisse. According to Oxfam At Vodafone, Vittorio Colao social media stories and instead base Prime Minister of the Kurdistan is to create a shared narrative in the classes and left behind by progress. International, in the US the wealthiest started a conversation among his our arguments on empirical proof and Regional Government, said that place where politics, economics and 1% captured 95% of post-financial 120,000 employees about sexual peer review. Humanism bursts the building reconciliation between Sunni, culture overlap. “Economics is about Arlie Russell Hochschild, a left- crisis growth from 2009-2014, while orientation. “My job as CEO is to boundaries of tribe, nation and race Shia and Kurdish communities is creating value,” he said, but “culture is leaning sociology professor from the the country’s bottom 90% became ensure that everyone feels free to by announcing that our ultimate moral the only long-term way to eliminate about creating values.” The currency University of California in Berkeley, poorer. There appeared little appetite express themselves in a corporate purpose is to reduce suffering and extremist ideologies. Iraq needs “a of culture is trust – a space where we spent five years talking to people in at Davos, however, to debate attempts environment.” He started by attaching enhance the flourishing of all humans. shared national vision…where our can focus on what unites us rather the US Deep South. She said they to significantly rebalance the benefits a rainbow ribbon to his company ID. Finally, progress will inexorably come diversity becomes our strength,” he than separates us. “My work,” said told her that “they’ve been waiting in of capitalism away from the few “It was the best thing I did,” he said. if we can only apply our reason, said. Ma, “is to turn what someone says is line for the American Dream – playing towards the many. “People thanked me in the elevator” knowledge and sympathy to enhance ‘mine’ into ‘ours’.” by the rules – but haven’t moved because it was a signal that the top learning and reduce suffering. Building a diverse society starts with forward”, often because others Nevertheless, chief executive officers of the company wanted to have the a shared dialogue. It means not only jumped the queue through affirmative- now recognize their role is not only debate. Pinker backs up his defence of including different faiths but also action programmes. to deliver profits but also to speak progress with some impressive facts. different genders. Two groups who Among politicians, Justin Trudeau, For most of human history, people will play a huge role in building peace Canada’s “feminist” prime minister, is lived for about 30 years; now life are women and young people, said leading the way in gender inclusion. As expectancy is nearing 80 years in Kristalina Georgieva, CEO of the World “If you want your company to operate well as appointing an ethnically Afghan developed economies. In the 18th Bank. It is vital to open up a space woman as Minister for the Status of century, a third of all children in Europe for women to play their part. “We are with wisdom, with care, then women Women, he has championed women died before their fifth birthday. Now more consensus-oriented,” she said. are the best.” in the boardroom and his cabinet and Jack Ma, Executive Chairman, Alibaba Group Holding, People's Republic of China

22 Creating a Shared Future in a Fractured World Creating a Shared Future in a Fractured World 23 1: Tipping Points for Sustainable Production 1 2: Marisa Miraldo, Associate Professor of Health Economics, Imperial College London, United Kingdom 3: His Majesty Abdullah II Bin Al Hussein, King of the Hashemite Kingdom of Jordan 4: Pioneering the Future of Governance in the Arab World

2

Building bridges to another reality The creative arts played a prominent role in Davos this year and demonstrated the power of culture in building empathy between societies.

At the traditional craft end of the arts spectrum, Masterworks was an inspiring collaboration between Turquoise Mountain and the Smithsonian Institution to explore the role of handmade art in creating social change for the common good. Afghan potter Abdul Matin Malikzada threw bowls that were painted by 3 Vermont potter Miranda Shackleton. Master Afghan wood carver Nasser Mansouri collaborated with fellow carvers from Switzerland and Jeddah to create beautiful designs in wood and plaster. And British jewellery designer Pippa Small worked alongside goldsmith U Tin Win from Myanmar.

At the high-tech end of the spectrum, the PORTALS exhibitions reclaimed technology to create intensely immersive human experiences. New Dimensions in Testimony is a deeply moving interactive conversation with Holocaust survivors. The University of Southern California’s Shoah Foundation recorded five days of testimony of several survivors, like Pinchas Gutter, who then appeared before participants on a large flat screen and answered questions as if they were in the room.

Awavena, created by Australian artist Lynette Wallworth, is a virtual reality journey deep into the Amazon. It tells the story of Hushuhu, the first woman shaman of the Yawanawa tribe. It took the courage of the dying male shaman to break with centuries of taboo and give Hushuhu his blessing. Since then, the Yawanawa tribe has seven female and seven male chiefs. The image of Hushuhu on the bridge has particular resonance for Wallworth. “I want to be able to cross that bridge and meet those people on the other side and create a shared future,” she said. 4

24 Creating a Shared Future in a Fractured World Creating a Shared Future in a Fractured World 25 1: Hilaree O'Neill, Athlete, 3: Fabiola Gianotti, 5: Rex W. Tillerson, 7: Justine Cassell, 9: Opening Performance Protect our Winters, Director-General, Secretary of State, US Associate Dean, 10: Building Strong Rural 7 8 France European Organization Department of State, Technology, Strategy Communities 2: Liu He, Member, for Nuclear Research USA; Børge Brende, and Impact, School 11: A Day in the Life of a Political Bureau of CPC (CERN), Geneva; Ginni President, Member of the of Computer Science, Refugee Central Committee; Rometty, Chairman, Managing Board, World Carnegie Mellon General Office Director, President and Chief Economic Forum University, USA Central Leading Executive Officer, IBM 6: Global Shapers - 8: Adrienne Nicotra, Group for Financial Corporation, USA Multilateral with Yo-Yo Professor, Australian and Economic Affairs, 4: Dan Buettner, Ma, Cellist, Sound National University, People's Republic of Founder, Blue Zones, Postings Australia China USA

12 4

3 5

1

6

9

11 1

10

26 Creating a Shared Future in a Fractured World Creating a Shared Future in a Fractured World 27 Shaping the agile governance of technology because they have relaxed regulatory “It is vital to safeguard the dignity frameworks. Uber, for instance, has faced much resistance in Germany, of the human person . . . by France and the UK, while Snapp, implementing economic policies that Governance 2.0: building a resilient a similar service in Iran, has grown favour the family.” exponentially. Cardinal Peter Kodwo Appiah Turkson, Prefect of the Dicastery for Promoting Integral Human Development, model – one we can all trust Governments also must learn from delivering a message from His Holiness Pope Francis businesses how to be customer- or citizen-focused. “The challenge is in co-creating with people to be The new technologies of the Fourth Industrial Revolution are sweeping in a agile and inclusive,” said Carlos Moedas, Commissioner for Research, Science and Innovation of the new era of change and have the potential to redefine modern lives. But what Much of the promise of the Fourth must build inclusion into policy European Commission. Policy and Industrial Revolution is based on and regulation, particularly in the protocols and policies need to be in place to ensure equal access and equal regulation must be designed through data analytics. The more data from developing economies where the collaboration creation with industry, protection in the future? the most varied sources, the more focus has to be on the more basic entrepreneurs, citizens and civil reliable it is. However, data is not challenges of using technologies society, and systems must be devised always reliable and free of bias. For to meet the challenges of housing, to facilitate this on an ongoing basis. example, the preponderant majority congestion, poverty and inclusion, and of clinical studies are conducted on climate change. For instance, health and drugs subjects of European descent, which regulators must constantly talk to leaves vast sections of humanity Digital payments, for instance, have to businesses, and vice-versa, to know underrepresented and less likely benefit the humanitarian sector rather The speed at which technological there; people are not pushing hard For instance, Amazon deliberates which genome-based therapies are to benefit from precision therapies. than those stashing incomes away in breakthroughs are coming along enough.” over whether its shopping cart should market-ready, how they will be rolled Therefore, users of data must be tax havens. has no historical precedent. Nascent appear on the left or right of the web out, how short- and long-term effects mindful of how they interrogate it, technologies such as drones, Agility also requires a cultural page to minimize the chances of it will be recorded and acted on, all of and regulation must ensure there is Policy and taxation decisions must blockchain, precision medicine, the change. This includes overhauling being abandoned. By how much does which would create a feedback loop transparency over how algorithms are favour choices that promote the larger internet of things (IoT) and artificial regulations that prevent government adding a picture enhance the chances that informs changes or next steps in constructed. good. Again, with smart mobility, intelligence are already transforming agencies from using existing data of a tweet being retweeted? regulation. It would be important to for instance, policy-makers should how business is done and how we live and dismantling unwieldly structures overcome contrasting sector cultures. The chief executive of one internet promote cleaner electric vehicles and our lives. No one can divine the shape that hinder coordination between Governments will have to learn to In the case of drones, the aviation company in Davos said that “privacy, safer autonomous vehicles over other of things to come, but for the Fourth departments and agencies. If do the same, particularly by building sector is obsessively focused on security, regulation are all questions.” choices; in energy production, they Industrial Revolution to fulfil needed, governments can create capacity so regulators are able safety, while Silicon Valley innovators He said people have the right to know should favour renewables and energy- its potential to benefit all, it must new, separate, dedicated agencies to operate at the cutting edge of want to “fail quickly” and learn from who has what data of theirs, who efficient technologies. be moulded, managed and governed or departments for data analytics as innovation. Industry, for its part, must deployment of solutions that are it can be shared with, and for what with agility. bureaucracies often suffer from inertia also play a role in building regulatory only truly fire-tested by public use. purpose. Transparency would put an end to that favours existing systems. capacity. Regulation must be forward- Communication, openness and rent-seeking and lobbying by shining But what would agility in governance looking, even anticipating scenarios collaboration are key. Regulation can ensure transparency sunlight on how and why decisions are mean, and how would it make Governments typically take decisions not yet evident – for example, in smart by stipulating assent and disclosure taken, and agility in regulation would governance inclusive and trustworthy using a “HiPPO” approach, that is to mobility by preparing for a near-term Governments must also devise norms. A significant section of opinion enable the economy and the society for all? say, the highest-paid person’s opinion future when conventional vehicles mechanisms to talk to each other, as believes economic benefits of data that the Fourth Industrial Revolution prevails. Instead, they must switch share the roads with driverless cars, the challenges posed by the Fourth must accrue to the individual rather creates. To begin with, agility entails a to a sense-and-respond approach. and eventually for a time when only Industrial Revolution traverse borders, than to the corporations that have faster response time. Government For example, how do companies like driverless cars are on the roads. be it data privacy and security or mined and used it. Public faith in agencies have to gear up for shorter Google and Facebook stay ahead Regulation must not discourage drone flights. On technologies such regulation is essential to building trust, turnarounds, particularly by using the of the pack? They do not try to experimentation and adoption as 5G, IoT and drones, it would be which, in turn, enables collection of data available and gathering more at a predict – they actively and constantly because the economic and human useful to have worldwide standards the vast amounts of data that Fourth faster pace. Erik Brynjolfsoon, Director experiment. These companies are cost of not using technology would and regulations, although these would Industrial Revolution technologies will of the MIT Initiative on the Digital continuously learning and upgrading be high. be slow and laborious to produce. be based on. Economy, said: “The technology is by carrying out experiments. In the meantime, country regulators A good regulatory framework would should, at the very least, exchange At the cusp of a new world, keep rule-making to the minimum. By best practices and toolkits to set humankind has the chance to serve “Educated, skilled women lift economic clearly establishing some key basic up national regulatory frameworks. those currently underserved and not minimum requirements, it would leave The World Economic Forum is a growth, help reduce poverty, change only the wealthiest who have the room for experimentation and learning. great platform to enable dialogue means to drive the ongoing change perceptions and eradicate evils like Developing countries, and jurisdictions between governments, and between and shape the future. Governance child labour.” such as China, are poised to rapidly governments and industries. Malala Yousafzai, Girls’ Education Activist and Co-Founder scale new technologies precisely of the Malala Fund, United Kingdom

28 Creating a Shared Future in a Fractured World Creating a Shared Future in a Fractured World 29 1: The Big Picture on 1 Cyber 2: Understanding Neural and Digital Networks with Princeton University 3: Tak Niinami, President; Chief Executive Officer; Member of the Board; Representative Director, Suntory Holdings, Japan 4: The Neuroscience of Prosocial Behaviour with UC Berkeley

1 How to strengthen cyber-resilience Cyberattacks are becoming more frequent and damaging. When A.P.Moller-Maersk of Denmark suffered an attack in June 2017, the company that handles 20% of the world’s cargo experienced a temporary slowdown in trade and had to reinstall 4,000 servers and 45,000 PCs. In all, the cyberattack cost the company more than $200 million. Last year, the WannaCry and Equifax attacks made news, but how many went undetected or unreported?

Organizations, both for-profit and non-profit, as well as governments remain largely unprepared. A recent PricewaterhouseCoopers study indicated that 40% of surveyed organizations had no cybersecurity policy and 55% had no protocols for responding to a crisis.

The first line of defence is within individual organizations – they must encourage awareness of vulnerabilities across all levels and embed cybersecurity in their culture. Management must acquire at least enough digital 2 skills to be able to speak to cybersecurity officers to understand vulnerabilities, prioritize risks and develop response. 3

A successful response would require not only IT expertise but also an effective operational and communications strategy. At the same time, a back-up system must kick in to keep the organization going while it tackles an attack.

Further, companies must share information about threats, attacks and best practices to create system-wide preparedness. “Every public company is almost laser-focused on security in their own moat,” said Timothy Murphy, General Counsel and Chief Franchise Officer, of Mastercard, USA. He added that they must share information and collaborate. Collaboration between companies and national and international authorities is the second line of defence.

Governments can learn from each other about setting up national cybersecurity mechanisms. Public-private partnerships are an effective approach, one that the World Economic Forum’s Global Centre for Cybersecurity is promoting through its convening power to bring a range of players together. Its Cyber Resilience Playbook for Public-Private Cooperation, released this month, is an essential resource.

4

30 Creating a Shared Future in a Fractured World Creating a Shared Future in a Fractured World 31 1: H.R.H. Princess 4: Sinéad Burke, 6: Isaac Herzog, Leader PwC International, PwC, Foreign Affairs of the Zhao Haishan, Tianjin Reema Bint Bandar Founder, Minnie of the Opposition in the USA; Kirstjen Nielsen, United Arab Emirates Municipal People's 7 8 Al-Saud, Vice-President Mélange, Ireland; Carlos Knesset, ; Alison Secretary of Homeland 8: Saad Al Hariri, Government, Vice-Mayor for Development and Edmar Pereira, Chief Martin, Group Chief Security of the United President of the Council of Tianjin Planning, Saudi Arabian Executive Officer and Risk Officer, Zurich States; Gunn Warsted, of Ministers of Lebanon 11: Giovanni Sansavini, General Sports Authority, Founder, Livox, Brazil; Insurance Group, Chair, Telenor Group, 9: Harnessing the Fourth Assistant Professor Saudi Arabia Tiffany Yu, Founder, Switzerland; Ciaran Norway Industrial Revolution for of Reliability and Risk 2: will.i.am, Founder and Diversability, USA Martin, Chief Executive, 7: Adel bin Ahmed the Earth Engineering, Department Chief Executive Officer, 5: Yoram Singer, National Cyber Security Al Jubeir, Minister of 10: Klaus Schwab, of Mechanical and I.AM.PLUS, USA Professor, Princeton Centre (NCSC), United Foreign Affairs of Saudi Founder and Executive Process Engineering, 3: Exhibition: PORTALS University, USA Kingdom; Robert E. Arabia; Anwar Gargash, Chairman, World ETH Zurich, Switzerland Moritz, Global Chairman, Minister of State for Economic Forum;

1

2 3

4 5

6

9

10 11

32 Creating a Shared Future in a Fractured World Creating a Shared Future in a Fractured World 33 1: Paula Kahumbu, 5: Closing Concert Chief Executive Officer, 6: Douglas L. Peterson, 3 WildlifeDirect, Kenya President and Chief 2: Chen Man, Founder, Executive Officer, S&P Beijing Man Xiang Global, USA Ya Tian Advertising, People's Republic of China 3: Zero Days VR 4: Mauricio Macri, President of Argentina

4 5

1

2 6

34 Creating a Shared Future in a Fractured World Creating a Shared Future in a Fractured World 35 1: Ethical by Design: 5: Carlos Moedas, Switzerland; Cate 8: The Learning 10: Steven Mnuchin, Embedding Values in Commissioner for Blanchett, Goodwill Revolution: It's not about Secretary of the Treasury 7 8 Technology Research, Science and Ambassador, Classrooms of the United States 2: Haidar Al Abadi, Prime Innovation, European United Nations High 9: Ursula von der Leyen, 11: Winnie Byanyima, Minister of Iraq Commission, Brussels Commissioner for Federal Minister of Executive Director, 3: Engineering Intelligent 6: Shah Rukh Khan, Refugees (UNHCR), Defence of Germany; Oxfam International, Food Systems with Actor, Red Chillies London; Klaus Schwab, Pierre Moscovici, United Kingdom Imperial College London Entertainment, Founder and Executive Commissioner, 12: Xavier Bettel, Prime 4: Fareed Zakaria, Host, India; Hilde Schwab, Chairman, World Economic and Financial Minister of Luxembourg; Fareed Zakaria GPS, Chairperson and Co- Economic Forum Affairs, Taxation Angel Gurria, OECD; CNN, USA; Benjamin Founder, Schwab 7: Queen Rania of and Customs, European Lakshmi N. Mittal, Netanyahu, Prime Foundation for Social Jordan and Hussein, Commission, Brussels Chariman and Chief Minister of Israel Entrepreneurship, Crown Prince of Jordan Executive Officer of ArcelorMittal

2

3

5 9 10

1 4

6

11 12

36 Creating a Shared Future in a Fractured World Creating a Shared Future in a Fractured World 37 1

2

3 4

5

1. Down to Earth 2. 3Cyril M. Ramaphosa, Deputy 5 President of South Africa 3. Hypnosis, Pain and the Power of the Mind with Stanford University 4. Kang Kyung-Wha, Minister of Foreign Affairs of the Republic of Korea 5. Are You Ready for the Next Pandemic?

38 Creating a Shared Future in a Fractured World Creating a Shared Future in a Fractured World 39 Davos moments

The winners of the acclaimed award-winning actor Khan received the award for his role in Bold PPP tackles Years of discussion in Davos are ending modern slavery will require and director, who was appointed a championing children’s and women’s bearing fruit as the United States and market-based solutions and proactive 2018 Crystal Awards UNHCR Global Goodwill Ambassador rights in India. He is also the founder modern slavery the United Kingdom have agreed to business leadership. There is potential in 2016 in recognition of her work of the non-profit Meer Foundation, seed the fund with a $75+ million for businesses and investors to drive Three leading artists were honoured with refugees, was honoured for her which provides support to female A bold public-private partnership start-up investment. Faced with the change like we have never seen at the World Economic Forum’s 24th leadership in raising awareness of the victims of acid attacks and major burn announced at the Annual Meeting unprecedented challenge of 40 million before.” annual Crystal Awards. Actress Cate refugee crisis. Elton John, one of the injuries through medical treatment and seeks to develop a $1.5+ billion fund people living in modern slavery, the Blanchett, musician Sir Elton John world’s most successful musical solo legal aid. to coordinate a coherent, global fund will collaborate across sectors and Bollywood actor Shah Rukh artists, was honoured for his work in strategy to address modern slavery. and geographies with a focus on three Khan received the award for their the fight against HIV/AIDS. The Elton Link US Senator Bob Corker of Tennessee core programmatic pillars: rule of law, achievements as bridge-builders and John AIDS Foundation, which he highlighted the creation of the Global business engagement and sustaining role models for all leaders of society. established in 1992, has raised more Fund to End Modern Slavery, a freedom. Jean Baderschneider, Chief They all have shown an exemplary than $400 million to support HIV/AIDS partnership that will fund programmes Executive Officer of the new Global commitment to improving the state of prevention programmes around the to combat modern slavery in the Fund, emphasized the critical role of the world. Blanchett, an internationally world. The Bollywood star Shah Rukh countries where it is most prevalent. business: “We believe that sustainably

Global Shapers take and socially engaged young leaders that help to break stereotypes and Leaders unite to Economy (PACE) to tackle pressing the heads of UN Environment, the aged between 20 and 30 from across advance gender equality. Five winning environmental challenges, from Global Environment Facility and on gender challenge the world. They are organized into proposals will be awarded $20,000 fight pollution electronic waste to plastic pollution. Royal Philips in collaboration with city-based hubs and have committed each to implement their project in their They advocate a circular economy: the Ellen MacArthur Foundation, The Global Shapers Community of the to working together to make a city. Forty heads of major businesses and one that exchanges the typical cycle the International Resource Panel, World Economic Forum announced positive and tangible impact through governments made a commitment of make-use-dispose of in favour Accenture Strategy and Circle at Davos a partnership with Procter local projects. By sparking a digital in Davos to efforts that cut waste of redesign, reuse and recycling. Economy. The World Economic Forum & Gamble to accelerate progress on conversation on gender equality, the and pollution, including the Chief According to the International acts as host and facilitator to PACE. gender equality. The Shapers, inspired Shapers social media movement will Executive Officers of Alphabet, The Resource Panel, globally, nearly by Procter & Gamble’s #WeSeeEqual encourage young people to use their Coca-Cola Company, Royal Philips, 90 billion tonnes of materials were campaign, will galvanize the collective voice to challenge the status quo. The Unilever and the Governments of consumed last year. This is predicted power of over 7,000 Global Shapers to partnership with Procter & Gamble Indonesia, Nigeria, the People’s to double by 2050. Only 9% is cycled raise awareness and mobilize action. includes a $100,000 grant challenge. Republic of China and Rwanda. The back into the economy, wasting an The Global Shapers Community is a Shaper hubs from 157 countries will leaders have partnered to form the estimated $4.5 trillion in “recoverable” network of dynamic, entrepreneurial be invited to submit ideas for projects Platform for Accelerating the Circular resources. PACE is chaired by

40 Creating a Shared Future in a Fractured World Creating a Shared Future in a Fractured World 41 Putting sustainability into practice: Acknowledgements ISO certification

The Forum has been acutely The World Economic Forum − Walking was promoted with The World Economic Forum would Basic Element Microsoft aware that the very act of sees certification as proof clearly indicated paths in like to thank its Strategic Partners for BlackRock Mitsubishi Corporation their valuable support of the World The Boston Consulting Group Mitsubishi Heavy Industries gathering world leaders and that it has effective processes Davos and by distributing Economic Forum Annual Meeting BP Morgan Stanley experts at a physical meeting in place and that there is shoe grips to participants 2018. Bridgewater Associates MSD site creates its own impact on real, practical sustainability − The Forum recognizes that a BT Nestlé the environment. This is why performance underpinning large proportion of the travel Strategic Partners Burda Media Novartis A.T. Kearney CA Technologies Omnicom Group the Forum aims to continually the Annual Meeting. The impact cannot be avoided ABB Centene Corporation PepsiCo improve the sustainability of validity of the certificate is and compensates all CO2 The Abraaj Group Centrica Pfizer the Annual Meeting in Davos- for three years but subject to emissions from participants, Accenture Chevron Procter & Gamble Adani Group Cisco Publicis Groupe Klosters. regular surveillance audits by media and staff air travel. The Adecco Group Citi PwC independent auditor DNV GL. This was done with the African Rainbow Minerals Clayton, Dubilier & Rice Qualcomm In January 2018, the World support of the South Pole Agility The Coca-Cola Company Reliance Industries Economic Forum achieved Sustainability measures taken Group, a Forum Social Alibaba Group Credit Suisse Renault-Nissan-Mitsubishi Allianz Dangote Group Royal DSM a critical milestone by being at this year’s meeting include: Entrepreneur ArcelorMittal Deloitte Royal Philips independently certified to − In addition to 100% − The Forum actively engaged Audi Dentsu Group SAP the international standard renewable electricity for with local stakeholders and Bahrain Economic Development Deutsche Bank Saudi Aramco for sustainable event temporary constructions, authorities to ensure mutual Board Deutsche Post DHL Saudi Basic Industries Corporation Bain & Company Ericsson (SABIC) management, ISO 20121. the Forum invested in benefits and it supports Banco Bradesco EY Sberbank energy efficiency by using the development of local Bank of America Facebook Schneider Electric ISO 20121 is a management LED lighting systems sustainability programmes Barclays Fluor Corporation Siemens AG Goldman Sachs SK Group system standard. It is a tool − Wood pellets were Google SOCAR (State Oil Company of the for organizations to embed introduced in place of PublicisLive, the Forum’s Hanwha Energy Corporation Azerbaijan Republic) sustainability principles and fuel oil to reduce carbon official provider of logistics HCL Technologies Standard Chartered Bank actions into their institutional emissions and key support services, has Heidrick & Struggles Swiss Re Hewlett Packard Enterprise Takeda Pharmaceutical policies and procedures. With − Careful waste management also achieved the ISO 20121 Hitachi Tata Consultancy Services ISO 20121, the Forum has a was implemented, including certification for the planning HSBC Thomson Reuters firm basis for planning how it donation and recycling of and delivery of the events it Huawei Tsinghua Holdings can address the impacts of materials after the meeting manages. This strong and IBM Corporation TPG IHS Markit UBS its events; implementing its − The number of vegetarian longstanding partnership Infosys Unilever plan to reduce these impacts; meals served increased 50% to deliver more sustainable Itaú Unibanco UPS monitoring and evaluating compared to the meeting in solutions to planning and JD.com USM Holdings JLL VEON progress, and then feeding 2017, and 70% of the food staging the Annual Meeting JPMorgan Chase & Co Visa the learning into the following served was locally sourced has been a huge benefit to Khazanah Nasional Berhad Volkswagen Group year’s planning. − The Forum shuttle fleet is us and amplifies what both Koç Holding VTB Bank made up of hybrid vehicles organizations have been able KPMG Wipro Kudelski Group WPP ISO 20121 takes the − The use of train was to achieve. Lazard Zurich Insurance Group management systems encouraged, and a special LIXIL Group approach familiar to thousands rate was negotiated for LUKOIL Strategic Foundation Partners of organizations worldwide participants arriving at Luksic Group Bill & Melinda Gates Foundation ManpowerGroup The Rockefeller Foundation through the success of Zurich airport for their Marsh & McLennan Companies Wellcome Trust standards such as ISO 9001 onward journey to Davos (MMC) (quality management) and − All badge holders were able Mastercard Strategic Technology Partner ISO 14001 (environmental to use free public transport McKinsey & Company Salesforce management). in Davos-Klosters 42 Creating a Shared Future in a Fractured World Creating a Shared Future in a Fractured World 43 Further information Contributors

The event page of the Annual The report was written by Mary Bridges, Kaiser Kuo, Meeting 2018 provides access Madhur Singh and Jonathan Walter. The Forum would to a richer level of content from also like to thank the official writers of the Annual Meeting the meeting, including videos, for their hard work and dedication. photographs, insights and webcasts of selected sessions. Editing and Design Production http://wef.ch/am18 Ann Brady, Editing Janet Hill, Editing

This report is also available to Ruslan Gaynutdinov, Graphic Designer download in PDF or HTML format: Kamal Kimaoui, Head of Production and Design http://wef.ch/am18report Floris Landi, Graphic Designer

Photographers Pierre Abensur Jakob Polacsek Benedikt Von Loebell

44 Creating a Shared Future in a Fractured World Creating a Shared Future in a Fractured World 45

The World Economic Forum, committed to improving the state of the world, is the International Organization for Public-Private Cooperation.

The Forum engages the foremost political, business and other leaders of society to shape global, regional and industry agendas.

World Economic Forum 91–93 route de la Capite CH-1223 Cologny/Geneva Switzerland

Tel.: +41 (0) 22 869 1212 Fax: +41 (0) 22 786 2744 [email protected] www.weforum.org