Yahoo Finance What Davos is REALLY about
The confab in Davos, Switzerland, is often criticized for being restricted to the corporate and political elite, out of touch with what’s going in the real business world, never mind with the common person. And this year with the markets being roiled, it’s never been easier to roll your eyes at the World Economic Forum.
The theme of the WEF this year is “The Fourth Industrial Revolution," which is about how new technologies like artificial intelligence, self-driving cars and robotics will change our lives. And of course Davos is focused on trying to solve the world’s problems, but there are other agendas at work here as well, and in some ways that’s the real stuff of Davos.
In a way you can see Davos as a big mosh pit or mating game where countries, companies, and individuals all come together to find various types of partners. Let’s take a look at some examples.
Countries: A number of countries are making concerted efforts here to show that they should be viewed in a new light. Argentina is one, as newish President Mauricio Macri, and his finance minister, Alfonso Prat-Gay, (whom I’m interviewing Friday for a panel on global debt), are here to show that the country is back to being a responsible fiscal player on the international stage. Iran is making a push here, too, in the immediate wake of having its sanctions lifted. The country is represented by Javad Zarif, Iranian minister of foreign affairs, who speaking of tensions with Saudi Arabia, said the Saudis need to “come to their senses.” Mohammad Agha Nahavandian, the chief of staff to Iranian President Hassan Rouhani, is here too, talking about why Iran will ramp up its oil production. Just what other oil producers don’t want to hear right now.
Companies: Some corporations have been here for a number of years, like McKinsey, Microsoft (MSFT), and Scotland’s Aberdeen Asset Management. They take on various levels of sponsorship, which can cost millions of dollars. Others are newer like Facebook (FB), and some like Palantir, the private, stealth Silicon Valley spyware/security-ware company seem intent on making a big splash this year. Seems like a pretty good place for Palantir to strut its stuff, since its software is appealing to governments, billionaires and other secretive types. (Disclosure: Yahoo (YHOO), which owns Yahoo Finance, has been a sponsor of WEF.)
People: Justin Trudeau, the charismatic, 44-year-old just-elected prime minister of Canada is here building out his brand. It’s kind of like a high-end, global coming-out party for him. And then there’s "all the president's men." Almost literally: Check out who’s coming from the Obama administration: Defense Secretary Ashton Carter, Vice President Joe Biden, Treasury Secretary Jack Lew, and Secretary of State John Kerry. Wow! So I guess the administration really cares about global issues right now? Well, not exactly. Remember all these men are serving in an administration in its eighth and final year. In other words, they'll most likely be out of jobs in 12 months. In other words, they need to find jobs. Like a nice plum vice-chairman position at say…. Aberdeen Asset Management or Palantir?
Make sense to you? If so, you’re starting to get how Davos really works.
