clear
Sunday September 24th, 2017 8:15AM

World Economic Forum says capitalism needs urgent reform

By The Associated Press
Related Articles
  Contact Editor

LONDON (AP) — Reforming the very nature of capitalism will be needed to combat the growing appeal of populist political movements around the world, the World Economic Forum said Wednesday.

Getting higher growth levels, it added, is necessary but insufficient to heal the fractures in society that were evident in the election of Donald Trump as U.S. president and Britain's vote to leave the European Union.

In a wide-ranging report from the organizer of the annual gathering of political and business leaders in the Swiss resort of Davos, the WEF identified "rising income and wealth disparity" as potentially the biggest driver in global affairs over the next ten years.

As an example of this growing inequality, the WEF highlighted the massive increases in CEO pay at a time when many people in advanced economies have struggled to make ends meet following the global financial crisis.

"This points to the need for reviving economic growth, but the growing mood of anti-establishment populism suggests we may have passed the stage where this alone would remedy fractures in society: reforming market capitalism must also be added to the agenda," it said in its latest Global Risks Report.

"The combination of economic inequality and political polarization threatens to amplify global risks, fraying the social solidarity on which the legitimacy of our economic and political systems rests," it added.

That's some conclusion from an organization that's sought to play a central role in the globalization process of the past couple of decades and that is closely identified with some of the world's richest people.

As well as getting growth higher, the WEF identified four areas that need to be addressed urgently: the need for long-term thinking in capitalism; a recognition of the importance of identity and inclusiveness in political communities; mitigating the risks and exploiting the opportunities of new technologies such as driverless cars; and strengthening global cooperation.

It added that a failure to address the underlying sources of the populist tide poses a threat to mainstream politicians and raises the risk that the globalization trend will go into reverse.

"Some people question whether the West has reached a tipping point and might now embark on a period of de-globalization," it said.

Although anti-establishment politics have tended to blame globalization for the loss of traditional jobs, the WEF said rapidly changing technologies have had more of an impact on labor markets.

"It is no coincidence that challenges to social cohesion and policymakers' legitimacy are coinciding with a highly disruptive phase of technological change," the WEF said.

Other key drivers identified in the survey of global risks related to climate change, rising cyber dependency and an aging population.

The 2017 report, the 12th annual report, is based on an assessment of 30 global risks by 750 experts from a variety of backgrounds, including business, academia and non-governmental organizations.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy
© Copyright 2017 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
The Latest: Spain says man slain by cops was terror driver
Spanish police say they have "scientific evidence" that a fugitive shot to death Monday was the man who drove a van through Barcelona's crowded Las Ramblas promenade, killing 13 people last week
10:10PM ( 11 minutes ago )
The Latest: McCain praises Trump's Afghanistan plan
Sen. John McCain is commending President Donald Trump's strategy for Afghanistan and says the president needs to start conducting himself as a "wartime commander in chief."
10:04PM ( 17 minutes ago )
A reptilian tail? A solar eclipse. Taylor Swift teases fans
Taylor Swift, Round 2: She returns to social media with video of a reptilian tail
9:53PM ( 28 minutes ago )
Associated Press (AP)
Judge orders Montana congressman photographed, fingerprinted
A judge has ordered Montana Rep. Greg Gianforte to be booked, photographed and fingerprinted after he pleaded guilty to assaulting a reporter the day before he was elected in May
9:17PM ( 1 hour ago )
'A primal experience': Americans dazzled by solar eclipse
The moon is blotting the sun from the sky in the first full-blown solar eclipse to sweep the U.S. from coast to coast in nearly a century
9:01PM ( 1 hour ago )
Record $417M award in lawsuit linking baby powder to cancer
A Los Angeles jury has ordered Johnson & Johnson to pay $417 million in a case to a woman who claimed in lawsuit that the talc in its iconic baby powder causes ovarian cancer when applied regularly for feminine hygiene
8:59PM ( 1 hour ago )
AP Business
World shares mostly down ahead of key central banker meeting
World stocks are mostly lower as joint U.S. and South Korean military drills keep markets on edge and investors await a key meeting of central bankers later this week
5:00AM ( 17 hours ago )
Past health chiefs: insurance market stability is the goal
Three former U.S. health secretaries of both parties say President Donald Trump and the GOP-led Congress should make stabilizing health insurance marketplaces their immediate goal
3:33AM ( 18 hours ago )
Asian shares mixed as markets await central banker meeting
Asian stocks are mixed as investors keep wary eye on joint military drills between U.S. and South Korean forces and await key meeting of central bankers later this week
2:02AM ( 20 hours ago )
AP Business - Economy
The Latest: Spain says man slain by cops was terror driver
Spanish police say they have "scientific evidence" that a fugitive shot to death Monday was the man who drove a van through Barcelona's crowded Las Ramblas promenade, killing 13 people last week
10:10PM ( 11 minutes ago )
The Latest: McCain praises Trump's Afghanistan plan
Sen. John McCain is commending President Donald Trump's strategy for Afghanistan and says the president needs to start conducting himself as a "wartime commander in chief."
10:04PM ( 17 minutes ago )
A reptilian tail? A solar eclipse. Taylor Swift teases fans
Taylor Swift, Round 2: She returns to social media with video of a reptilian tail
9:53PM ( 28 minutes ago )
Trump renews Afghan commitment but says 'no blank check'
President Donald Trump vows to continue fighting in Afghanistan despite his initial inclination to withdraw. Yet he insists the U.S. will not offer "a blank check" after 16 years
9:44PM ( 37 minutes ago )
The Latest: Trump says Pakistan must end terrorist havens
President Donald Trump says the U.S. "can no longer be silent" about terrorist safe havens in Pakistan
9:42PM ( 39 minutes ago )