There was a time when anyone who mattered in New Delhi’s economic policymaking circles and Mumbai’s financial and business circles considered it a privilege and fashionable to spend the last few days of January in a snow-bound Swiss village, rubbing shoulders with business, political and thought leaders from around the world. No longer. By opting to opt out of leading the Indian delegation to Davos this year, Union Finance Minister Pranab Mukherjee has made a telling point. Not showing up at Davos won’t make a difference. The corporate sponsors of the World Economic Forum (WEF) at Davos have for some time understood the declining global interest in their annual winter-fest, both on account of competing forums worldwide, some sponsored by the WEF itself, and on account of a decline both in western interest in the rest of the world, given the West’s preoccupation with its own problems, and the unwillingness of emerging market leaders to preen and perform before largely western audiences. In seeking to remain relevant, Davos’ organisers have tried various tricks and the latest one this year is to become gender-conscious and politically correct. Klaus Schwab, the WEF founder, told the media on the eve of this week’s gathering that Davos would be both more welcoming to women leaders and to ideas regarding “inclusive growth” and the social responsibilities of business. The WEF has specified that one out of every five delegates at Davos must be a woman, and the Indian co-chair this year will be a woman. But it remains to be seen if the new quota system is a serious response to male dominance of the corporate world, or just the WEF’s way of remaining in business.
Political correctness too could be a way of ensuring business in emerging markets. The wooing of India’s “inclusive model” could be a way of the West saying a “New Delhi Consensus” is a better substitute for the discredited “Washington Consensus” rather than a more threatening “Beijing Consensus”. “At a time when the world is searching for a new model of economic development”, said Mr Schwab, “India’s experience as a crucible for new types of inclusive growth gives it a special role among developing economies.” Snubbed by China, a crowd-puller at Davos in the past and now a rival with its own Boao Forum, and worried both about China’s rise and Europe’s decline, the Davos person is beginning to discover the charms of democratic India. It is entirely possible, though, that in years to come, India may want to showcase itself to the world from an Indian forum rather than in a remote, snow-bound Alpine village!
Davos enthusiasts would, however, argue that the retreat is a good way for corporate leaders to get up to speed with new ideas from around the world and would help attract new investors to emerging markets. It would be useful for the WEF to carry out a study on how much investment came India’s way thanks to its talk-fests, as opposed to the simple animal spirits of global investors who are enthused by India’s rise. Moreover, any sensible business person would check out the ground reality in India before investing and not just fall for smart power-point presentations, peppered with Bollywood beauties and spicy Indian curry.
