A warning for ‘Davos Man’

A warning for ‘Davos Man’

Today I want to do a shout-out for the just-released report of the World Economic Forum’s Global Agenda Council on Geopolitical Risk. I was privileged to participate in this council this year, and the report is the product of three days’ deliberation and discussion back in November and subsequent discussion and redrafting afterwards. (Kudos to Ian Bremmer of Eurasia Group for ably chairing the group).

Our task was to assess geopolitical risks in 2013. You can read the full report for some specific forecasts, but our overarching theme was the increasing vulnerability of elites in virtually every sector. In a globalized and unequal world where information flows almost instantaneously, where economic tides can shift without warning, where masses can mobilize via new media, and where the slightest transgressions can be amplified and repeated in the blogospheric echo-chamber, elites in both the public and private sector can find the ground shifting beneath their feet suddenly and without warning.

Money quotation:

"The vulnerability of elites cuts across emerging markets and advanced economies, democracies and authoritarian states, public and private institutions, and a wide array of issues. This is the challenge: as their legitimacy gets called into question, political actors struggle to react to instability, crises and opportunities in the most effective manner. Whether it is the growing disparity of wealth or the evolving flow information, several factors are facilitating pushback against existing policies and institutions and making both governments and some private actors across the globe look increasingly fragile."

Examples? Think of Hosni Mubarak, Muammar Qaddafi, and (one hopes) Bashar al-Assad.   Look at what happened to CIA director David Petraeus or Dominique Strauss-Kahn.  Consider how Rupert Murdoch’s reputation and clout were tarnished by the phone hacking scandal, and ask yourself where his former editor Rebekah Brooks is now. Similarly, the Jimmy Savile scandal brought down the head of the BBC, showing that the leaders of a powerful and sophisticated news organization cannot control the news cycle.

Given that the annual WEF meeting at Davos is a confab of global elites, I wonder if our report will make any of them feel a bit … well … nervous. Some of them should.