World Economic Forum president and CEO on development’s role in Davos

The World Economic Forum in Davos is serious business — literally. C-suite executives descend on the Swiss resort town each year in the hopes of hatching big deals. The glitzy affair has for decades been associated with investment and geopolitics. But besides the wealthy CEOs and political heavyweights, Davos also attracts people across the development and humanitarian sphere, in large part because of the growing recognition that improving the world’s lot requires the help of the private sector. But that recognition has plenty of room to grow, according to Børge Brende, president and CEO of the World Economic Forum. The longtime Norwegian diplomat talked to Devex President and Editor-in-Chief Raj Kumar by email about the need to include the private sector in development priorities and how the “intelligent age” can be used to tackle poverty and humanitarian crises. “Devex does a great job of raising awareness of humanitarian and development issues, covering places that many other news outlets don’t.” --— Børge Brende, president and CEO, World Economic Forum Raj Kumar: I can’t believe another annual meeting is upon us. Before we head up to the snowy village of Davos, thanks for taking a few questions for Devex readers interested in what goes on there. First of all, this year’s theme focuses on “Collaboration for the Intelligent Age.” What is that all about and how does it apply to the global development and humanitarian community? Børge Brende: Firstly, I’m delighted you will be joining us once again in Davos. Devex does a great job of raising awareness of humanitarian and development issues, covering places that many other news outlets don’t. This will be our 55th Annual Meeting, where we have always sought to bring together diverse perspectives from all parts of society. This is even more important this year. Geo-economic fragmentation, geopolitical polarization and divisions over values are impacting all of us. At the same time, we are seeing exponential innovation, and deployment around whole sets of inter-connected technologies, from AI, quantum, biotech to health tech. They offer an unprecedented opportunity to increase productivity and living standards, though they also come with challenges and risks that should be addressed. Given these powerful forces at play, Davos provides an opportunity to avoid entering an age of fragmentation and instead work together on a can-do, people-centred agenda for an Intelligent Age. I think the global development and humanitarian community is already grappling with these forces. This community is often charged with supporting people that have lost out as a result of a failure of actors in conflict to cooperate, or others that have fallen through the cracks. You are also harnessing the power of new technologies. Humanitarians like the International Committee of the Red Cross are now using AI to more accurately predict natural disasters and to detect anti-personnel landmines more effectively. The UN is using AI to strengthen supply chains for humanitarian aid, and UNICEF has even developed artificial intelligence models to predict and combat diseases such as dengue fever in subtropical countries. It is also a particular strength of many in the humanitarian and development community that you think long-term. You consider how the structural questions holding back growth and poverty reduction can be addressed. These are the very questions that we will be trying to tackle at Davos. Reviving and reimagining growth is critical to building stronger and more resilient economies and lifting people out of poverty. Raj Kumar: As a former foreign minister yourself, I don’t need to tell you that we’re facing political and fiscal headwinds to foreign assistance, leading to aid cuts across many OECD countries. At the same time, humanitarian needs are increasing due to rising conflict and the growing consequences of climate change. Many in the development and humanitarian community are seeking a new paradigm — perhaps bolstered by the technological advancements of the “Intelligent Age.” What conversations will this year’s annual meeting advance regarding how emerging technologies can address development and humanitarian imperatives? Børge Brende: There’s no doubt that flows of finance for development are under pressure. I remain convinced that despite pressures at home, countries must invest in global development. Not just because it is the right thing to do, but also because it is in our collective interest to tackle inequality, climate change, and crises all around the world. I am optimistic we can do this. But I also think the sector could be more open to different types of actors, particularly those from the private sector. We are seeing new actors and resources coming together in support of humanitarian and development goals. We have been advocating for this for some time, but the humanitarian and development sector must be serious about including these actors — investors, businesses, philanthropists — in a sustained way. And in our pursuit of more sustainable solutions, we must acknowledge that while they are also driven by impact, they may see a different path to achieving it. You might call that a new paradigm. In Davos, we will show how supporting impact-driven businesses, in partnership with humanitarian and development actors, can add value and lasting impact in frontier markets, in places like Somalia, Nigeria and DRC. While we are focused on addressing long-term challenges, in Davos we will also be shining a light on acute crises facing the international community now. Indeed, we are hosting a session on crises beneath the headlines with a view to raising awareness of the situations in places like Sudan, Myanmar, DRC and Venezuela. We will also convene humanitarian leaders with a wider group of private sector, civil society and government representatives for events focussed on disruptions in the humanitarian ecosystem. The idea here is to bring different perspectives — from tech leaders to those working in logistics and supply chains — and enable people who don’t usually meet one another to explore innovations in the humanitarian sector. That is the essence of Davos. Raj Kumar: Those aid cuts I mentioned: They are spurring more interest in crowding in private sector investment to advance global development goals, like renewable energy and sustainable infrastructure. But so far there’s been more rhetoric than reality when it comes to blended finance — private financial flows to these kinds of projects, especially in the lowest-income countries, remain scant. The forum has perhaps the world’s best connection to investors who can change this dynamic. What do you think can be done to accelerate investment in these areas? Børge Brende: This topic has been a priority for the World Economic Forum for several years, since we launched the Humanitarian and Resilience Investing (HRI) Initiative, here in Davos in 2019. One of the key challenges we’ve encountered is investor hesitancy to engage in frontier markets because of persistent structural barriers, market failures and mispriced risk. We see the need for a two-tier approach. One, through our HRI community of over one hundred partners, we have been building a collaborative approach to create more enabling market conditions and build trust in a fragmented ecosystem. We are also embarking on a more targeted approach in specific markets, starting in sub-Saharan Africa in collaboration with the African Development Bank. Two, we have been shifting the narrative around frontier markets to highlight their potential as investment opportunities and spotlight ambitious entrepreneurs that are having a positive impact on vulnerable communities. Later this year, we will publish a first-ever report quantifying the market opportunities within these regions, helping to reshape perceptions and build confidence among investors.