Davos 2026: A Last Stand for the Old World Order?
The World Economic Forum's annual gathering in Davos, Switzerland, carries a significant weight this year, as it may be the last chance to salvage the fading global order. The theme, "A Spirit of Dialogue," seems ironic given the turbulent geopolitical landscape and the recent actions of star guest Donald Trump.
The US president is leading a massive delegation to Davos, including key figures like the secretary of state, Marco Rubio, the treasury secretary, Scott Bessent, the commerce secretary, Howard Lutnick, and the special envoy Steve Witkoff. This large presence is a stark contrast to last year, when Trump made a surprise appearance just days after his second inauguration, delivering a speech that threatened tariffs, urged NATO countries to increase defense spending, and called for the Federal Reserve to slash interest rates.
Since then, the world order has been under immense strain. Russia's invasion of Ukraine and the rising influence of autocratic regimes in Beijing have already jeopardized the rules-based global order. The "spirit of dialogue" has been elusive, as tensions continue to escalate.
This year's meeting coincides with an extraordinary geopolitical crisis. The war in Ukraine persists, with President Volodymyr Zelenskyy attending Davos to rally support. Adding to the complexity, Trump suggested that Ukraine is less eager for peace than Russia, just days before his appearance at the WEF.
When asked about their fears for the future, politicians, business leaders, and academics identified "geoeconomic confrontation" as the most pressing risk. This refers to the economic dominance struggle between major powers. The second most concerning choice was outright war between nations.
In recent weeks, Trump's actions have only intensified global concerns. He has sent troops to Venezuela, escalated rhetoric about annexing Greenland, and threatened Iran with military action if protests continue. These moves have raised questions about the stability of the postwar international order.
However, amidst the turmoil, there is a growing pushback. Central bankers, usually reserved, published a joint letter this week, expressing their concerns over the independence of the Federal Reserve chair, Jerome Powell. This unprecedented action demonstrates a collective effort to defend multilateralism.
Other leaders, such as NATO chief Mark Rutte, the French president, and the European Commission president, Ursula von der Leyen, will also attend Davos to advocate for free trade, transatlantic cooperation, and the defense of Ukraine against Russian aggression.
António Guterres, the UN secretary-general, warns that leaders who disregard international law set a dangerous precedent. He highlights the US behavior as a significant threat to the postwar order. Global military spending has reached an alarming $2.7 trillion, with an annual increase of 9.4%, the highest since the Cold War.
Despite the US military's expansion, China and developing countries are gaining economic ground. This shift could lead to growing resistance among populations worldwide. Trump's efforts to impose a pro-Russian peace in Ukraine have faced resistance, and his actions regarding Iran have been met with concern from Saudi Arabia and other Gulf countries.
Despite the challenges, the WEF continues to attract influential figures. Over 60 heads of state or government, 55 economy and finance ministers, and 800 chief executives or chairs of big corporations are expected to attend. Companies like Nvidia, Microsoft, and Anthropic will showcase their AI technologies.
However, the environmental impact of Davos is a growing concern. Analysis reveals a significant increase in private jet flights associated with the event between 2023 and 2025. The WEF president, Børge Brende, acknowledges the complex geopolitical backdrop but emphasizes the importance of dialogue for deal-making.
Despite the challenges, Davos remains a platform for influential figures. However, the absence of WEF founder Klaus Schwab, who stepped down from the board last year amid allegations of unauthorized spending, marks a new era for the organization.
Critics argue that the WEF has lost its original purpose, and its current state is problematic due to a lack of accountability and legitimacy. Others, like Jamie Drummond, a former Young Global Leader, continue to attend in the hope of influencing powerful individuals, even as the forum's influence wanes.
