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LAUSANNE: For the second time in its history, the Annual Meeting of the World Economic Forum (WEF) will not be held in the small town of Davos in Switzerland.
The first time it was uprooted from its traditional headquarters was in New York in 2002, to show solidarity with the United States after the 9/11 terrorist attacks and threats from anti-globalization movements.
This time, forced by the numbers of the pandemic in the Alpine country, the organizers have decided that if the 2021 meeting is to be held face to face, it will have to be in a safer place: Singapore.
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The Swiss government announced nationwide restrictions from December 12 to January 20, as infections rose by 4,262 on Tuesday (December 8), bringing the country’s total since the start of the pandemic to more than 350,000 cases.
ICY DAVOS OR HUMID SINGAPORE?
For participants, the obvious difference to adjust to will be the contrast in temperatures between cold Switzerland and hot, humid Singapore in May.
Despite that, in addition to public health safety during the pandemic, Singapore offers a few factors that make it attractive and could make it a more permanent place on the WEF circuit.
On the one hand, anyone who has been to the Davos meetings will be familiar with the inconveniences that the Swiss people represent for the participants, despite the charm that the ski resort has hidden in the embrace of the Alps.
It is far from the main airports, which is not a problem if you arrive by helicopter as some of the eminent participants do.
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It is also too small to accommodate a large crowd of high-caliber guests and its hotels are far from the best in the world, assuming they are even available. They are also not easy to reach from the conference venue.
Then there’s the downside of walking in elegant Spanish shoes on icy pavements along streets that don’t invite casual conversation due to the icy air.
Police walk in front of the Congress Center before the annual meeting of the World Economic Forum (WEF) in Davos, Switzerland, on January 20, 2020. REUTERS / Denis Balibouse
Instead, Singapore Airport is one of the most important hubs in the world and is only half an hour from Sentosa Island, which would be an exceptional setting for the Annual Meeting if that is the final location to be decided.
It is also the same place where Donald Trump and Kim Jong-un found the security and protection they needed for their first summit in 2018.
Being a commercial center, most of the companies currently involved in Davos have operations or offices in Singapore. The country’s system is also representative of the type of partnership between the public and private sectors that the WEF advocates.
RECOGNIZING A GROWING ASIA
Second, while it is true that Davos is conveniently located in the center of Europe, but as the world’s center of gravity shifts east toward Asia, flying to Singapore will likely have a certain appeal to many heads of state. and executive directors.
Indeed, the WEF would send a strong message that it recognizes and moves in tandem with the shifts in global economic and political power by permanently shifting its flagship event to Asia.
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It already hosts major summits in China and other countries in the region, so it may make sense to move away from Europe and Switzerland, which are in decline as pillars of the world economy.
In 1974, when the first annual meeting took place, the European Union and Switzerland accounted for 28.3 percent of total world GDP. In 2019, they together accounted for 18.5 percent, which is only slightly above the weight of China today.
Switzerland remains one of the world’s most competitive economies, extremely resilient and innovative, ranking third this year in IMD Business School’s Global Competitiveness Ranking.
Davos Switzerland forum
The country is among the most digitally advanced in the world and its education system includes two of the top 20 universities in the world, ETH Zurich and EPFL Lausanne, according to the QS World University Rankings 2020.
It also provides highly qualified personnel to industries and service companies in the country.
Its political stability, along with an institutional environment where the rule of law, security, and transparency are paramount, have helped develop an impressive private sector that powers the economy.
SINGAPORE AN IMPORTANT CENTER
The country is also a powerful magnet for capital and talent, as reflected in the IMD 2020 World Talent Rankings, which Switzerland topped. However, the same can be said for Singapore these days, with the two countries often competing to top various international rankings for competitiveness and innovation.
In 2020, Singapore became the most competitive economy in the IMD Global Competitiveness Ranking for the first time. Two of its universities, the National University of Singapore and Nanyang Technological University, have also been placed in the top 20 in the world.
While Singapore was once considered the Switzerland of Asia, we could now say that Switzerland is instead becoming the Singapore of Europe.
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It is not difficult to imagine a scenario in which some of the most important contributions that Switzerland has made to the world, such as the Red Cross, can also be transferred to Asia in a short time, since most of the world’s population is located there.
The same is true of the international organizations that have made their home within Europe, the United Nations and FIFA among them.
Dyson moved its headquarters from the UK to Singapore in 2019. Then, in the autumn of this year, several of China’s largest tech firms, such as Alibaba and Bytedance, were reported to be expanding their operations in Southeast Asia, including Singapore. .
Prime Minister Lee Hsien Loong with Financial Times Editor Roula Khalaf at the Leading A New Multilateralism panel at the annual meeting of the World Economic Forum in Davos on January 22, 2020 (Photo: Ministry of Communications and Information)
It is only a matter of time before other big-name entities, including international organizations, move to Asia, with Singapore well placed to benefit from such a change.
PUTTING A GOOD SHOW
Third, the 2021 edition will undoubtedly be an important test of the country’s safety, road efficiency and hospitality sector. At the same time, traditional security and cybersecurity will be key as many dignitaries will attend, aspects that Singapore should have no problem with.
However, the island has hosted major events and world leaders. In addition to the annual Shangri-la Dialogue, it has also hosted meetings of the World Trade Organization and the Asia-Pacific Economic Cooperation (APEC), among others.
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But that is something that other countries in Asia, not to mention the world, can also do. Japan, Hong Kong, South Korea and Dubai, which have hosted major world events, boast excellent road infrastructure, air connectivity and world-class hospitality.
In addition to providing a great first-time experience for WEF attendees, what can Singapore offer that sets it apart from other potential host venues?
EAST MEETS WEST
Although the WEF has Swiss roots, which have been established since 1971, it is a global-minded institution. In its own words, the WEF meets the need for “a new kind of institution, one with the adaptability, the entrepreneurial spirit, and the trust of all stakeholders” to enable cross-border and cross-sector collaboration and “shape the global industry. , regional and agendas ”.
US President Donald Trump meets with Iraqi President Barham Salih during the 50th annual meeting of the World Economic Forum (WEF) in Davos, Switzerland, on January 22, 2020. Office of the President of the Republic of Iraq / Brochure via REUTERS
Earning the trust, support, and participation of a wide variety of stakeholders may require the WEF to strike a balance between the Western and Eastern business and government worlds. Singapore has often been touted as a reflection of both worlds: an English-speaking country exposed to Western culture on the one hand and a globalized and developed Asian country on the other.
By relocating its annual meeting to Singapore on a permanent basis, the WEF would have to better identify with the emerging new region of Asia while maintaining something akin to Western values, governance and institutions.
That would help you gain “the trust of all stakeholders” and thus influence the overall results.
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Despite the humid weather, Singapore will undoubtedly put on a good show, attract new stakeholders and add new perspectives to the table, all while being a convenient location in the heart of a rising Asia.
If things go well, no one will want to return to Davos in January 2022.
Arturo Bris is Professor of Finance at IMD. Since January 2014 he has also directed the world renowned IMD Center for Global Competitiveness.
