Each year some of the most powerful people in the world – presidents, prime ministers, central bankers – gather for a week in the small ski resort of Davos, Switzerland. They spend five days conferring with one another on topics pertaining to the global economy, trying to come up with solutions to international problems together. This year the event is particularly special because the President of the United States decided to attend it (something a POTUS hasn’t done since Bill Clinton’s time) and talk more about his plans for the States. So, what did this year’s World Economic Forum in Davos achieve?
Cryptocurrencies were one of the big topics this year, discussed over many events during the week. Many of the attending economists, including Bank of Canada governor Poloz, expressed their skepticism about Bitcoin as an asset whose real-world value cannot be accurately measured, thereby creating a bubble on the market. IMF director Christine Lagarde also pointed to the sophistication encryption of cryptocurrencies and the dangerous levels of anonymity they allow, creating a cover for illegal weapon and drug deals, as well as ties to terrorism. Likely this year the financial markets would still struggle to accept cryptocurrencies as proper assets.
This year the forum was also spiced up with a special corner for discussions on social topics such as privilege, immigration, harassment, as well as discrimination based on gender, religion, or sexual orientation. While these are not topics typically part of economic conferences, they do show that economists are willing to look in new directions in terms of basic societal notions.
Still, the most anticipated part of the event is Donald Trump’s keynote speech which he is currently delivering. The American president previously angered international politicians with his “America First” rhetoric, which appears to contradict the effort towards international cooperation which is the foundation of the World Economic Forum. Other reasons why WEF attendants might be on edge is because Trump poses a lot of risks for the global economy – his bickering with North Korean leader Kim Jong-un, his negative view on trade relations with China, going back on the Paris agreement on climate change, his promise to dissolve the deal with Iran regarding nuclear energy, and many, many more.
While to many Trump’s “America First” message seems protectionist and anti-global, in his speech Trump attempted to shed more light onto it and show that it might not mean that. He stated that the United States are currently doing well economically and offer excellent opportunities for business and investment. He also mentioned that he supports the ideas which the WEF stands behind and his “America First” agenda is simply aimed at ensuring the participation of the United States in international agreements will be done on conditions favorable to the US.
This may appear to calm down some of the tensions associated with Trump’s presidency which have been dragging the American dollar down lately, but in fact another political scandal has been brewing in the US this week. Multiple news outlets published reports on Trump supposedly trying to fire the special counsel currently investigating the possible Russian interference in Trump’s election. Trump has not addressed this conflict of interest in front of media so far, even though some expected him to do so in Davos.
