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Jan 27, 2021
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Davos 2021: The Great Reset and Its Enemies

The material about the true meaning of what is happening outside our country was provided by the Katekhon Analytical Group.

Undoubtedly, the event for over 1200 delegates from 60 countries aims to respond to the apocalyptic events of the past 12 months. “A Decisive Year to Restore Confidence” is a theme built around the idea of ​​a “Great Reset” that World Economic Forum (WEF) founder Klaus Schwab and Prince Charles began to promote last year.

The event will be accompanied by virtual broadcasts in 430 cities around the world to highlight the fact that we face global challenges that require global solutions and action.

It also recognizes that the effects of the pandemic are likely to be further exacerbated by other serious global threats, including the climate crisis, financial crises and social and economic inequality. To cite just one example, the death rate from COVID-19 in England in December was more than twice as high in the poorest areas as in the wealthy.

So how successful can a WEF mission be?

History lessons

This is not the first time that global crises require global action, but they have produced mixed results in the past. After World War I, Great Britain played a key role in shaping the League of Nations on the international stage. Ultimately, this did not happen, as Britain pushed for post-war reparations, which undermined German economic recovery and political stability.

The next time the world tried to prevent future conflicts by the end of World War II, lessons were learned to some extent from the past. The Allies met in Bretton Woods, New Hampshire, USA in 1944 to develop a policy of economic stability.

This led to a new system of interconnected exchange rates organized around the gold-backed US dollar, as well as new institutions to help govern it, including the International Monetary Fund and what later became the World Bank. This was followed in the next couple of years by the emergence of the United Nations and the predecessor of the World Trade Organization.

The Bretton Woods system lasted until the early 1970s, when the United States abandoned the gold standard, but much of the system created in the 1940s has survived in one form or another today. The 2007-2009 financial crisis, which led to the first global recession since the 1930s, has prompted many calls for action to prevent similar crises in the future.

There has been some regulatory tightening, but the threat of instability remains due to excessive debt and too much speculation. It was only in the 1940s that we saw a truly adequate response to global crises, what will change the situation this time?

Big reboot

The WEF’s Big Reset discourse recognizes that the steps needed to tackle the current crises go far beyond economic reforms, “climate” measures, or the fight against a pandemic — all of these are required and much more.

It is the idea that global action should be underpinned by a mission to change society to make it more inclusive and cohesive; to ensure compliance with environmental sustainability and social sustainability. This follows their call to “create better”, which is supported by many around the world.

WEF is committed to action in seven key areas: environmental sustainability; a fairer economy; “technology for good”; the future of work and the need for retraining; business improvement; a healthy future with equitable access to opportunities for all; cooperation “outside geopolitics” – national governments interact at the global level.

The WEF says the key to success is restoring public confidence, which is “undermined in part by the alleged mishandling of the coronavirus pandemic.” But that can be difficult given minor changes in corporate or government leadership. Much hope is pinned on 78-year-old Joe Biden, who served as vice president of the United States for eight years, during which many of these problems escalated rather than resolved.

Unfortunately, the main reason for optimism is that today’s crises are so severe that they can provoke certain actions. Future financial crises look likely. The climate crisis is increasingly perceived as a threat to existence.

The pandemic is now a huge economic and humanitarian disaster, and in the future such pandemics are recognized as likely due to various reasons: from the explosive growth of world travel to the effects of climate change.

Neoliberal drift

The key question at this year’s conference, which is to be followed by a second round of discussions in Singapore in May, is whether a new form of globalization will be developed.

There was a market-based form of globalization that led to World War I and then retreated in the interwar period. Bretton Woods led to the era of regulated globalization from 1945 to the 1980s. But since then, the “global elite” has expanded regulatory restrictions on everything from speculative financial flows across borders to mergers and acquisitions.

A new era is needed, based on the Paris Agreement to curb climate change, right now that Americans are joining it again – with more support for the Green New Deal, aimed at achieving zero carbon emissions and making the world economy truly sustainable …

We need bold initiatives to counter the threat of future pandemics, financial speculation, tax evasion, and the threat of financial crises. It is also necessary to reduce unsustainable inequalities in wealth, income and power around the world.

Will corporate and political decision-makers be able to meet this challenge? Adequate pressure from the public – from citizens, voters, consumers, workers, educators and activists – is required to push governments and businesses to fundamentally change course.

Over the past few years, we have witnessed movements To borrow, I also, Black lives matter and countless climate crisis groups. Calls to action have been coming from business leaders in Davos and elsewhere for years. It is hoped that this time around, the scale of the emergency will finally make radical change inevitable.

AuthorJonathan Mickey. Professor at the Department of Innovation and Knowledge Sharing, University of Oxford. Received funding from ESRC in the past, Leverhulme, The Higher Education Innovation Fund, the European Commission, the Ministry of Trade and Industry, the Royal Economic Society and other academic financial institutions.

The original material without translation can be read here.

The material about the true meaning of what is happening outside our country was provided by the Katekhon Analytical Group.

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