75to think about what the situation will be in the
future, but with the way we’re seeing Russia act-future, but with the way we’re seeing Russia act-
ing? No. Wing? No. With the current approach, I don’t see ith the current approach, I don’t see
any kind of potential rapprochemany kind of potential rapprochement in the years ent in the years
to comto come, unfortunately.e, unfortunately.During the pandemDuring the pandemic there has been a surge ic there has been a surge
in global win global wealth inequality. Is that healthy for ealth inequality. Is that healthy for
the wthe world?orld? The short answer is no. For the fi rst The short answer is no. For the fi rst
timtime in two decades, we are now seeing an in-e in two decades, we are now seeing an in-
crease in the amcrease in the amount of people living in extremount of people living in extreme e
poverty, ending a period of historic poverty poverty, ending a period of historic poverty
eradication.eradication.WWhat’s the best what’s the best way to redress that inequal-ay to redress that inequal-
ity? ity? For developing countries and emFor developing countries and emerging erging
economeconomies, the past three decades have defi -ies, the past three decades have defi -
nitely been very positive in the sense that they nitely been very positive in the sense that they
have given themhave given them unique opportunities. That eco- unique opportunities. That eco-
nomnomic mic model is somodel is something that we will have to ething that we will have to
try to continue. But the growth has to be mtry to continue. But the growth has to be more ore
inclusive and sustainable. Inside countries, this inclusive and sustainable. Inside countries, this
is a domis a domestic issue that can and should be ad-estic issue that can and should be ad-
dressed with tools such as redistribution and dressed with tools such as redistribution and
taxes. In mtaxes. In my view, rising inequality is challeng-y view, rising inequality is challeng-
ing the legitiming the legitimacy of the social macy of the social market economarket economy.y.Do you see rising polarization as an outcomDo you see rising polarization as an outcome e
of this increase in inequality?of this increase in inequality? [Inequality] is [Inequality] is
defi nitely part of the reason, exacerbated by so-defi nitely part of the reason, exacerbated by so-
cial mcial media. In the beginning, social media. In the beginning, social media was a edia was a
way for ordinary people to have mway for ordinary people to have more say with ore say with
leaders. But for somleaders. But for some state actors and other peo-e state actors and other peo-
ple with a clear agenda, using social mple with a clear agenda, using social media is a edia is a
low-cost way of creating conspiracy theories.low-cost way of creating conspiracy theories.The themThe theme of Davos last year we of Davos last year was “The Great as “The Great
Reset,” wReset,” which spawhich spawned lots of conspiracy ned lots of conspiracy
theories. Wtheories. What did you learn fromhat did you learn from that expe- that expe-
rience about comrience about commmunicating your municating your message?essage?
It’s very unfortunate. I’mIt’s very unfortunate. I’m fl abbergasted. The fl abbergasted. The
Great Reset was really about using the post-Great Reset was really about using the post-
COVID situation as a way of getting it COVID situation as a way of getting it
right when it comright when it comes to growth, in-es to growth, in-
clusiveness, and climclusiveness, and climate change. ate change.
The planet is burning. WThe planet is burning. We can’t e can’t
stop talking about business’s stop talking about business’s
responsibility for taking care responsibility for taking care
of the environmof the environment. Went. We will e will
not change that mnot change that message be-essage be-
cause somcause some people on the e people on the
fringes are spinning this fringes are spinning this
into sominto something bad when ething bad when
it’s really the right mit’s really the right medicine edicine
for getting the planet back for getting the planet back
on track. But we mon track. But we might ight
have to fi ght back tougher have to fi ght back tougher
in the in the future. future. □□WWe’re speaking before Davos, the theme’re speaking before Davos, the theme of e of
wwhich is “Hhich is “History at a Turning Point.” Could istory at a Turning Point.” Could
you describe wyou describe what kind of turning point that hat kind of turning point that
is? is? WWe are probably in the me are probably in the most challenging geo-ost challenging geo-
political and geo- political and geo- economeconomic situation in decades. ic situation in decades.
The challenges we will discuss at Davos are cli-The challenges we will discuss at Davos are cli-
mmate change, the war in Ukraine, and mate change, the war in Ukraine, and making sure aking sure
the pandemthe pandemic recovery doesn’t end in a contrac-ic recovery doesn’t end in a contrac-
tion. Global challenges need global solutions, but tion. Global challenges need global solutions, but
global solutions are mglobal solutions are more diffi cult than ever be-ore diffi cult than ever be-
cause of the polarization amcause of the polarization among the big powers.ong the big powers.WWhat role does the What role does the WEF see itself playing in EF see itself playing in
resolving those tensions?resolving those tensions? M Many of the many of the most ost
pressing challenges can benefi t frompressing challenges can benefi t from a m a multi-ulti-
stakeholder approach. In Davos, we will mstakeholder approach. In Davos, we will make ake
sure, for examsure, for example, on climple, on climate change, that ate change, that
we have the big comwe have the big companies of the world panies of the world
comcommmitting to going net-zero by 2050 itting to going net-zero by 2050
through the CEO Climthrough the CEO Climate Alliance. Wate Alliance. We e
are also getting the big comare also getting the big companies of the panies of the
world, what we call the First Mworld, what we call the First Movers Co-overs Co-
alition, to comalition, to commmit to green their supply it to green their supply
chains. This is the Apples and the Amchains. This is the Apples and the Ama-a-
zons of the world saying to their suppliers: zons of the world saying to their suppliers:
if you don’t reduce your CO2 footprint, we if you don’t reduce your CO2 footprint, we
will just not buy fromwill just not buy from you. you.VladimVladimir Putin has addressed ir Putin has addressed
the Wthe WEF mEF many timany times. Russian es. Russian
oligarchs, moligarchs, many of wany of whomhom have have
nownow been hit by sanctions, been hit by sanctions,
regularly threwregularly threw lavish parties lavish parties
at Davos. Wat Davos. Will any of themill any of them be be
wwelcomelcome ever again? e ever again? WWe don’t e don’t
have any Russian comhave any Russian companies in panies in
Davos this year, nor any sanc-Davos this year, nor any sanc-
tioned people. Wtioned people. We will have a big e will have a big
focus on the totally unacceptable focus on the totally unacceptable
war in Ukraine. Wwar in Ukraine. When we’re in hen we’re in
the mthe middle of a war, it’s very hard iddle of a war, it’s very hard7 Q U E S T I O N S7 Q U E S T I O N SPRESIDENT OF
THE WORLD THE WORLD
ECONOMIC FORUMECONOMIC FORUM
BY BILLY PERRIGO
‘RISING INEQUALITY IS CHALLENGING THE LEGITIMACY OF CHALLENGING THE LEGITIMACY OF THE SOCIAL MARKET ECONOMY.’THE SOCIAL MARKET ECONOMY.’
MATEUSZ WLODARCZYK—NURPHOTO/GETTY IMAGES