Future of Davos forum in doubt amid key leadership departures

The annual meeting of the World Economic Forum (WEF) in Davos faces an uncertain future following significant leadership changes within the organisation.

Klaus Schwab, the WEF's founder and long-serving chairman, stepped down abruptly, while Alois Zwinggi, the managing director, is set to retire in 2027, Caliber.Az reports via Swiss media.

With Schwab’s departure, only Børge Brende, the WEF's CEO, remains from the trio that had ensured the event's longstanding connection to Davos.

The changes have reignited discussions within the WEF's 27-member foundation board, with some members suggesting that the forum could be held elsewhere in the future, particularly in light of challenges such as the COVID-19 pandemic. During the pandemic, the WEF was forced to cancel its in-person meeting in Davos, holding it virtually instead. Singapore was considered as an alternative location, though that too was ultimately not realised.

Schwab, who remains deeply committed to Davos, expressed concerns over the event’s long-term ties to Switzerland following his departure. In a recent interview, he revealed that he had been in discussions with Swiss government officials to secure the forum's continued presence in the country.

Schwab proposed that a trusted government representative be appointed to the foundation board to safeguard these connections, though this process was interrupted by a whistleblower scandal before it could be completed.

The leadership changes have shifted the balance of power within the WEF. Sources indicate that Philipp Hildebrand, former head of the Swiss National Bank and a close ally of Schwab, was considered a likely successor on the foundation board. However, his deep ties to Schwab may have hindered his prospects, as a faction within the WEF now seeks a fresh direction. Hildebrand, who was recently invited by the Swiss government to share his views on the country’s relations with the US, is no longer seen as a frontrunner.

For years, Schwab fought to keep the annual meeting in Davos, with the event being relocated only once, to New York in 2002 following the 9/11 attacks. However, some members of the foundation board are now advocating for other locations, including Singapore and potentially US cities, to host the prestigious gathering.

While some members of the Swiss government have questioned whether a Swiss government representative should join the foundation board, others are uncertain about the practicality of such an arrangement. The WEF’s status as a private organisation has led some to argue that the Swiss government should maintain a degree of separation from its governance.

If the WEF were to relocate from Davos, it could be a mixed result for locals in the Landwassertal valley. While the annual event brings significant economic benefits, it also causes inconvenience for residents. Recent referendums have shown broad public support for the WEF, suggesting that a move would be a shock to many in Davos.

By Aghakazim Guliyev