The World Economic Forum (WEF) in Davos, Switzerland, has long been a symbol of global cooperation and elite dialogue. But in 2026, it faces a daunting challenge: can it save the old world order from crumbling? With the theme 'A Spirit of Dialogue', the gathering aims to foster conversation, yet the star guest, Donald Trump, has spent the past year disrupting the very foundations of global diplomacy.
Trump's arrival in Davos, accompanied by a massive US delegation, including Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Special Envoy Steve Witkoff, is a stark contrast to the forum's ideals. Just a year ago, Trump delivered a fiery speech at Davos, threatening tariffs, urging NATO to increase defense spending, and demanding immediate interest rate cuts from the Federal Reserve. This set the tone for a tumultuous year in global politics.
And now, with the rules-based global order already strained by Russia's invasion of Ukraine and China's growing influence, the spirit of dialogue seems like a distant dream. As war rages in Ukraine, its president, Volodymyr Zelenskyy, attends Davos to rally support, while Trump controversially suggests that Ukraine is less willing to seek peace than Russia.
The WEF's survey of over 1,300 leaders reveals a grim outlook, with 'geoeconomic confrontation' topping the list of fears for the next two years. This reflects the escalating power struggles between nations, with the potential for outright war looming large. Trump's recent actions, including sending troops to Venezuela, annexing Greenland, and threatening Iran, only add to the tension.
However, amidst this crisis, there is a glimmer of hope. Central bankers, usually cautious, have taken a stand, publicly defending the independence of the Federal Reserve chair, Jerome Powell. This is a sign that the fight for multilateralism, the very principle WEF was founded upon, is not over. Leaders from NATO, France, and the European Commission will also be present, advocating for free trade, transatlantic cooperation, and Ukraine's defense against Russian aggression.
The UN Secretary-General, António Guterres, warns that leaders who disregard international law set a dangerous precedent. While Russia's invasion of Ukraine and the Middle East conflict have raised concerns about war crimes, it is the US's actions that have pushed the postwar international order to the brink. The erosion of international law, Guterres emphasizes, is happening in plain sight.
Global military spending has skyrocketed to $2.7tn, a 9.4% annual increase, the highest since the Cold War. This surge, partly in response to perceived threats from Russia, China, and the US, could lead to a dangerous arms race. Yet, some diplomats believe it may also spark a global resistance against dominant powers, as China and other developing economies continue to gain ground in the global economy.
Trump's attempts to impose a pro-Russian peace in Ukraine have been met with European resistance. Similarly, his plans to attack Iran were halted, partly due to lobbying from Gulf countries and the lack of a credible external military response to the Iranian regime's actions. Multinational cooperation persists, but it often goes unnoticed.
This year, the UN will establish an independent scientific panel on artificial intelligence, aiming to balance the commercial interests of US companies with ethical considerations. Despite criticism, the WEF continues to attract the world's elite, with over 60 heads of state, 55 economy and finance ministers, and 800 CEOs expected. Companies pay a hefty fee for participation, and WEF uses some of this income to subsidize civil society groups, promoting inclusivity.
The annual Davos gathering is a spectacle, with corporate leaders and politicians mingling in ski boots and fur hats, engaging in public debates and private meetings, and socializing at lavish parties. This year's attendees include AI industry leaders like Nvidia's Jensen Huang, Microsoft's Satya Nadella, and Anthropic's Dario Amodei, whose companies have significantly influenced the AI boom and Wall Street.
The environmental impact of Davos is also under scrutiny, with a report by Greenpeace revealing a sharp increase in private jet flights associated with the event. Børge Brende, WEF president, remains optimistic, emphasizing Trump's deal-making skills and the importance of dialogue. However, he acknowledges the complex geopolitical backdrop, making this year's meeting particularly challenging.
Winnie Byanyima, former co-chair of Davos and executive director of UNAids, finds Trump's presence contradictory to WEF's principles. She argues that the forum should promote a rules-based world, where business and governments work together for mutual benefit. But Trump, she believes, represents the idea that might is right.
This year marks a new era for Davos, as its founder, Klaus Schwab, steps away from the spotlight. After allegations of unauthorized spending, Schwab defended his actions, claiming he never used the forum for personal gain. Although cleared of material wrongdoing, the controversy has left a mark. Schwab's absence is notable, but he remains in the public eye with a new book, 'Restoring Truth and Trust', coinciding with the Davos meeting.
Danny Sriskandarajah, a former Young Global Leader, believes the WEF has lost its way. He argues that while Schwab's vision of a multi-stakeholder approach was ahead of its time, the current lack of a rules-based global order undermines the forum's legitimacy. Jamie Drummond, another Young Global Leader, recalls the optimism of the early 2000s, when Davos discussions shaped global diplomacy. He cites the launch of Gavi and the Make Poverty History campaign as examples of Davos' impact.
Drummond acknowledges that the forum's heyday may be over, but he remains hopeful that Davos can still influence global leaders. The question remains: can Davos 2026 rise to the challenge and help restore the old world order, or will it be remembered as the last-chance saloon for a fading era of global cooperation?
