Klaus Schwab steps down as WEF chairman – media reports

Klaus Schwab, the founder of World Economic Forum (WEF), will reportedly transition to role of non-executive chairman.

World Economic Forum (WEF) founder and executive chairman Klaus Schwab has announced he will step back from his role, after more than 50 years at the head of the organisation, according to the Semafor news platform.

The article cites a letter from Schwab to staff on Tuesday in which he outlines his intention to transition to a non-executive-chairman role before the next meeting of the annual gathering at the Alpine resort town of Davos, Switzerland, in 2025. The change is pending approval by the Swiss government.

Semafor also cited a statement by a forum’s spokesperson, who said that the organization is “transforming from a convening platform to the leading global institution for public-private cooperation.”

Schwab, 86, did not reportedly name his successor, but said that over the last year the group’s executive board “under the leadership of President Borge Brende, has taken full executive responsibility.” A former Minister of Foreign Affairs of Norway, Brende, 58, has been WEF president since 2017.

Established by Schwab in 1971, the WEF is a nonprofit foundation and its annual gathering in Davos is the world’s biggest annual business and economics event.

The forum traditionally attracts dozens of high-ranking world leaders and CEOs, with more than 50 heads of state attending in 2024, according to the organization.

It operates much like a “family business,” Semafor wrote, pointing out that Schwab’s children have been appointed to high-ranking positions and his wife Hilde heads the organization’s foundation and awards ceremonies in Davos.

The report also described the WEF as a “remarkable business,” which brought in nearly $500 million in revenue in the year ending March 2023, and “had a neat 200 million Swiss francs ($220 million) sitting in cash.”

The WEF boasts an impressive gathering of world leaders, business magnates, and other influential figures. Critics argue that the forum is less about solving global issues and more about maintaining a status quo that benefits the rich and powerful at the expense of the vulnerable and disadvantaged. The annual Davos meeting has become synonymous with backroom deals and elitist agendas, where the voices of the many are drowned out by the whispers of the few.

The economic policies championed by the WEF have come under fire for exacerbating income inequality and fostering dependency rather than empowerment. For instance, while the forum promotes free trade and open markets, these policies often benefit multinational corporations at the expense of small businesses and local economies. The push for deregulation and privatization has led to a concentration of wealth and power that undermines democratic processes and leads to economic disenfranchisement for the majority.

The WEF claims to be at the forefront of tackling climate change and environmental degradation. However, their efforts are often seen as superficial or hypocritical. The annual parade of private jets into Davos is just one example of the glaring disconnect between the forum’s environmental rhetoric and the reality of its practices. While discussing carbon footprints and sustainability, many of the attendees are representatives of industries responsible for large-scale environmental harm.

One of the most significant criticisms of the WEF is the lack of transparency and accountability in its proceedings. The discussions that take place in Davos can have profound implications for global policies and practices, yet they are conducted behind closed doors, with little to no input from the broader public. This secrecy fosters public distrust, further alienating the public from a forum that already feels remote and unapproachable.