Healing a fractured world

The 2018 annual meeting of the World Economic Forum in Davos will be remembered for the strong statements made by three top leaders of the world. The heads of state of France, India and US shared statesmen like and conciliatory messages with the delegates at a time when global fault lines are expanding. 

Despite some improvement in the global economic situation, protectionism, terrorism and climate change are causes for deep worry for worldwide wellbeing. US President Donald Trump, French President Emmanuel Macron and Indian Prime Minister Narendra Modi spoke at Davos for the first time after taking charge as heads of government. 

These leaders displayed a soothing approach to the theme of ‘Creating a shared future in a fractured world’. Each offered new ideas, explained their positions and offered a coordinated approach for resolving pressing issues for the global community. 

Among the many leaders, the most anticipated was the presence of Trump. His strong action on immigration, trade and environment has upset many aspects of the global compact on growth. Trump has been criticized by many for enhancing fractures in the world. Trump pulled out of the climate change agreement, the global trade trans-pacific partnership and is tightening immigration rules. His America First approach has led many to believe that the US is retreating from globalisation, even as emerging markets like China and India embrace it. But at Davos, it was a new Trump on the dais. He presented his steps in a logical manner in an effort to earn the respect of business and social leaders. 

“America first does not mean America alone,” Trump said, “We support free trade, but it needs to be fair and it needs to be reciprocal because, in the end, unfair trade undermines us all.” In a veiled reference to China, Trump made it clear that the United States will no longer turn a blind eye to “unfair economic practices, including massive intellectual property theft, industrial subsidies and pervasive state-led planning.”

Uncharacteristically, Trump was welcoming. “There has never been a better time to hire, to build, to invest, and to grow in the United States. America is open for business and we are competitive once again.”

Prime Minister Narendra Modi became the first India leader to open the annual summit in its 48-year history. His address on climate change, terrorism and need for collaboration helped him address the delegates as a global leader. Apart from presenting India as an investment destination, Modi asked for a new globalism rooted in deep humanism as described in ancient traditions of the country. Humans are at war with nature while “greed-based consumption” is creating a crisis in the world. Modi urged global leaders to think beyond selfish interests since it was negatively impacting globalisation and driving climate change. The fractured world can be healed if the world also adopts the Indian philosophy of Vasudhaiva Kutumbakam (the world is a family). 

President Emmanuel Macron also made the most of Davos to enhance his reputation as a progressive leader. He too spoke of creating a new global order that was fair to citizens but not protectionist. “France has been very much affected by structural change and its relationship with globalisation. I have to fight with a nationalist party because there are many fears in my own country – because we didn’t deliver properly,” said Macron. “Some people think the solution is to get out of globalisation. And that gives me a special responsibility of building a France that is open to the rest of the world, and standing beside those who have been forgotten and left behind by globalisation – and to show that it benefits the middle and lower classes.”

These three leaders have the power to lead their regions by setting the right example. US’s economic turnaround should allow Trump political space to become part of the climate change effort. He can also take stronger steps to boost fair trade between the rich and poor countries. Modi is already creating a new narrative in Asia based on cooperation and collaboration. At Davos, he underlined the fact that India does not covet territories of other countries in stark contrast to the many regional disputes that China has. Modi’s ASEAN outreach is another example of focusing on development and not conflicts. Macron is trying to reform France so that it becomes more open-minded about the rise of new economies and faces competition fairly. 

Fittingly, Davos inspired leaders from Americas, Asia and Europe to agree on healing a fractured world. Modi had praised WEF for being ahead of its time. WEF spoke of a connected world in 1997 when there was no Twitter or Amazon. In 2018, a red alert by WEF on growing fault lines was needed. The promises and thoughts shared at the alpine heights of Davos by Trump, Macron and Modi were heard around the world. Now, these lofty goals need stronger follow through by these leaders. 

Pranjal Sharma is an economic analyst and author of ‘Kranti Nation: India and The Fourth Industrial Revolution’