World Economic Forum: Need for ‘the Great Reset’ of capitalism

World Economic Forum: Need for ‘the Great Reset’ of capitalism

Klaus Schwab, the executive chairman of World Economic Forum, has recently advocated for rearrangement of the global order through “The Great Reset”. India should also take this development seriously and try to limit the potential implications of this possible global reset.

What is Great Reset?

The Great Reset is an initiative by the World Economic Forum. It has set off furious conspiracy theories on the right and contemptuous dismissal from the left.

What is the Importance of the Great Reset?

This initiative will mainly focus on reforming market-led Capitalism into stakeholder capitalism. Which will be focussed on ensuring equality and sustainability.

Background of the Great Reset

The concept is developed, based on the assessment that the world economy is in deep trouble. Events like the pandemic, ongoing technological revolution, impacts of climate change have further worsened the global situation.

It is based on the assessment that the world economy is in deep trouble. Schwab has argued that the situation has been made a lot worse by many factors, including the pandemic’s devastating effects on global society, the un- folding technological revolution, and the consequences of climate change.

The WEF’s (World Economic Forum) online Summit began recently. Its physical meeting is scheduled to take place in Singapore in June 2021. It is only the second time after 2002 that Davos annual meeting is taking place outside Davos.

Choice of place in Singapore instead of any European or American city is a symbol of shifting focus on Asia. In this context, the World Economic Forum’s initiative for “The Great Reset” has gained attention.

Is the Present world really need the Idea of Great Reset?

The agenda of The Great Reset touches on many key issues facing the world, according to C Raja Mohan, director, Institute of South Asian Studies, National University of Singapore. Three important themes among them are,

Serious thinking on moving from capitalism to “stakeholder capitalism”. Because capitalism’s lack of concern for stakeholders/society’s interests and its greed for profit maximization. For example, Tech giants who are the big beneficiaries of deregulation pay few taxes and actively depress wages for working people.

With the US rejoining the 2015 Paris accord on mitigating climate change. Now the focus needs to shift on equal distribution of economic and social costs of moving away from carbon use. 

Liberalism of the ’90s resulted in increasing conflicts among nations and resulted in present “competitive multilateralism”. The forum will focus on global cooperation on important universal issues.