WEF PLEDGES: REALITY IS BITTER: By Vanam Jwala Narasimha Rao

 WEF PLEDGES: REALITY IS BITTER

MoUs on Investments at Schwab’s 

World Economic Forum Echo ‘Malthusian Theory’

By Vanam Jwala Narasimha Rao

The Hans India (03-02-2025)

{Billions of investment announcements pledged at WEF and consequently hurried MoUs with companies by a few Chief Ministers create a perception of rapid economic expansion and development as well as false expectations of huge employment creation. In actual implementation, fund disbursement, ground-level projects, and tangible benefits like employment creation or economic uplift typically follow a slower and linear pace due to innumerable bureaucratic hurdles, regulatory challenges, and economic uncertainties, not to speak of politically motivated hyped announcements}-Synoptic Note by Editor

Andhra Pradesh Chief Minister N Chandrababu Naidu expressed the view that, a visit to the ‘World Economic Forum (WEF)’ is not just about signing MoUs, but engagement and networking with ‘Globally Influential Individuals’ under one roof, to gain insights into the direction the world is headed. This is absolutely true, especially in the context of series of ridiculous statements ‘day in day out’ by few Chief Ministers about their signing MoUs in Davos, including with Indian companies!!!

The 54th WEF Meeting was held in Davos, from January 15-19, 2025, attracting International Organizations and Global Companies. Approximately 3000 significant global leaders, policymakers, experts, leaders from government, business, civil society, and academic institutions participated. They included Prime Ministers, Ministers, and Top Officials. USA delegation comprising 674, UK’s 270, Chinese delegation with 140 members, and India’s largest-ever delegation of 133 (with the theme of ‘One Team and One Indian Pavilion’) from Telangana, Andhra Pradesh, Maharashtra, Uttar Pradesh, Tamil Nadu, Kerala, Karnataka, and West Bengal participated. Five Union Ministers, three state Chief Ministers, nearly 100 CEOs and leaders from various sectors from India participated. 

‘European Management Forum (EMF)’ established in 1971 by a 33 years old Swiss Engineer and Economist, Professor Klaus Schwab, was renamed as ‘World Economic Forum (WEF)’ to broaden its Vision. Schwab’s idea was to create an efficient and effective platform for European Executives and Entrepreneurs to learn and adopt USA Management Techniques. Gradually it evolved to focus on broader economic and social issues. Schwab strategically leveraged his contacts to mobilize resources, basically from the initial gathering of approximately 400 European Business Leaders. Conceived as a non-profit foundation under the supervision of the Swiss Federal Government, WEF traditionally has been holding ‘Annual Meetings’ in Davos, chosen for its serene mountain setting to foster open and cooperative discussions, embodying the ‘spirit of Davos’ as termed by Schwab.

WEF does not own permanent venue in Davos. Some ‘Annual Meetings of the New Champions (AMNC)’ focusing on innovation, entrepreneurship, technology, by bringing together leaders from business, government, academia, and civil society were held in China’s Dalian. Telangana’s First Chief Minister Kalvakuntla Chandrashekhar Rao attended one such meeting in Dalian in 2015. Reverberating his ‘Intellectual Presence and with a Statesman Like Approach’ in his five-minute talk in the meeting, in seriatim, KCR defended with Nationalism Spirit the Indian Economy, endorsed host country China’s Development with International Comprehension, and precisely projected the State as an investment destination as a dedicated leader of Telangana. Exactly decade after what he envisioned there, the Economic Survey 2024-25 presented to Parliament by Union Finance Minister, has reaffirmed ‘Telangana’s Exceptional Economic Growth’ under KCR Regime and leadership. Great!!

Participation in the WEF Annual Meetings by those who are significant contributors to the economic or political landscape or who are likely to add value to the forum's goals of fostering global collaboration and solving complex global challenges, is ‘Strictly by Invitation’ often ‘Stage-Managed.’ WEF provides an opportunity for lobbying economic opportunities, investments, and global collaborations. Chief Ministers and Union Ministers from India participate to showcase their economic potential, and to attract global investors. They apparently build international partnerships, including strategic discussions and behind-the-scenes interactions. 

WEF projecting as a ‘Socializing Institution’ in ‘Shaping Global Economic Policies’ serves as a platform to ‘Promote Neoliberal Agendas’ inadvertently facilitating the spread of policies that prioritized deregulation and market liberalization, which may not align with the interests of the broader population. Nevertheless, it became a key platform for developing countries to showcase investment opportunities. 

When Narendra Modi attended WEF Annual Meeting 2018, he became the First Indian Prime Minister to do so in two decades after Deve Gowda who attended in 1997. Modi in his keynote address highlighted India's economic reforms, ease of doing business, and investment opportunities. Modi consciously promoted initiatives like Make in India, Digital India, and Skill India to attract global investors. He addressed global concerns like climate change and terrorism, positioning India as a responsible global power. In tune with this, perhaps, while addressing an event hosted by Confederation of Indian Industry (CII) at the 54th meeting, Schwab hailed India’s successful growth story and spoke about the country's success in achieving 7% growth annually. Undoubtedly this was Great Recognition on international Dais. However, the Economic Survey’s Prediction hooks India’s ‘Real GDP Growth’ in 2025-26 between 6.3% and 6.8% only ‘keeping in mind the upsides and downsides.’ 

N Chandrababu Naidu was one of the first and most notable Chief Ministers from India to attend the WEF Annual Meetings in the late 1990s and early 2000s. He actively utilized the WEF platform and promoted the erstwhile AP state as a destination for foreign investment. He also promoted the state's IT industry and state's role in India's IT growth, especially Hyderabad’s emergence as an IT Hub. This time also he attended in similar fashion. He interacted with the Microsoft founder Bill Gates. Telangana Chief Minister Anumula Revanth Reddy attended in 2023 also now. Most Successfully he secured significant investments for Telangana from Amazon, Sun Petrochemicals, Tillman Global Holdings etc. worth Rs 1.78 lakh crore, which is expected to generate employment opportunities for 49,550 people. Great!

WEF is celebrated for its potential to forge international partnerships to secure investments. However, the tangible benefits, particularly in terms of economic growth and employment generation, often come under scrutiny. In recent years, many political leaders, especially Telangana and Andhra Pradesh have used this high-profile platform to announce ‘Large-Scale Investments, Often in Billions.’ The question is whether these investments are ‘Merely Publicity Stunts’ deliberately designed to ‘Showcase Political Agenda’ or do they ‘Truly Contribute to Long-Term Prosperity’?

It may be of interest to draw a parallel between the ‘Malthusian Theory’ which discusses ‘Arithmetic and Geometric Progressions’ and the ‘Largescale Investment Announcements’ made at the World Economic Forum, versus their ‘Actual Implementation or Real Benefits.’ The ‘Malthusian Theory of Population Growth’ is in ‘Geometric Progression’ or growing exponentially (1, 2, 4, 8, 16...). ‘Food Supply Growth’ will be in ‘Arithmetic Progression’ or increases linearly (1, 2, 3, 4, 5...). Eventually population outpaces food supply, leading to shortages, crises, and corrective measures.

In the similar way, ‘Billions of Investment Announcements Pledged in WEF’ and ‘Consequent Hurried MoUs’ with companies by few Chief Ministers are in ‘Geometric Progression’ which grow exponentially year on year creating a ‘Perception of Rapid Economic Expansion and Development’ as well as ‘False Expectations of Huge Employment Creation.’ When it comes to ‘Actual Implementation’ it is not even in ‘Arithmetic Progression.’ The real execution, such as fund disbursement, ground-level projects, and tangible benefits like employment creation or economic upliftment, typically follows slower and linear pace due to innumerable bureaucratic hurdles, regulatory challenges, and economic uncertainties, not to speak of ‘Politically Motivated Hyped Announcements.’ 

The result is that, this disparity leads to a ‘Development Gap’ where the promised economic transformation falls short of expectations, resulting in delays, skepticism, and policy adjustments. Just as Malthus emphasized the need for checks and balances to align population with resources, ‘Policymakers and Stakeholders’ must ensure realistic projections, continuous monitoring, and ground-level execution to align World Economic Forum investments with actual economic growth. While ‘Large-Scale Investments are Certainly a Positive Step’ towards economic development, these hyped announcements cannot be sheer ‘Game-Changing Propositions.’ The goal should be to ensure that these investments translate into tangible development, especially in Telugu states. 

Professor Klaus Schwab of World Economic Forum who fairly demonstrated remarkable skills as a ‘Public Relations Strategist, Specialist Economist, and Maneuverer’ in the global political and economic landscape, may well have steered the WEF toward even more meaningful change. Moving forward, ‘Greater Humility, Accountability, and an Ethics-First Approach’ would help solidify its credibility and long-term relevance, ensuring that, it delivers a positive legacy for future generations.

(The Writer is former Chief Public Relations Officer to First Telangana Chief Minister K Chandrashekhar Rao)