The WEF Annual Meeting is currently taking place in Davos, Switzerland, from January 20 to 24, 2025.

Purpose and Initiation of the WEF

  • The World Economic Forum was founded by German professor Klaus Schwab in 1971, originally as the European Management Forum. 
  • Schwab, a professor of business policy, introduced the concept of “stakeholder capitalism,” advocating for businesses to create long-term value by considering the interests of all stakeholders, not just shareholders. 
  • This vision evolved the WEF into a platform for global leaders to come together and address economic and social challenges.

WEF’s Evolution and Activities

  • Initially focused on improving European management practices, the WEF shifted its scope after significant global events in 1973, such as the collapse of the Bretton Woods system and the Arab-Israeli War. 
  • By 1975, the Forum expanded its membership to include the world’s leading 1,000 companies. 
  • Over the years, it has become a prominent venue for tackling critical global issues, including AI, geopolitical risks, and climate change, and features over 500 sessions where thousands of participants, including business leaders, politicians, and experts, collaborate on solutions.

Funding and Location of the WEF

  • The WEF is largely financed by global corporations with annual revenues exceeding $5 billion. 
  • The choice of Davos, a serene Swiss town, as the meeting location is inspired by its calm and focused atmosphere, which helps foster effective discussions. 
  • This setting has also witnessed landmark moments in international diplomacy, such as the first meetings between North and South Korea and key interactions during the South African political transition.

Historical Significance and Diplomatic Impact

  • Throughout its history, the WEF has been a venue for groundbreaking diplomatic engagements. 
  • It played a key role in South African reconciliation, including the first joint appearance of Nelson Mandela, F.W. de Klerk, and Mangosuthu Buthelezi in 1992. 
  • Additionally, the WEF has been instrumental in the establishment of the G20, which was first discussed at the 1998 meeting, and continues to influence global policy decisions through initiatives like the Global Competitiveness Report and the Global Gender Gap Report.

Published by Pragyanxetu

One Earth. One Future