Understanding the World Economic Forum: From Klaus Schwab to Davos –In-Depth Explanation

The World Economic Forum (WEF) is an independent, non-profit international organization founded in 1971. Its headquarters is in Geneva, Switzerland. It exists to bring the world’s most powerful people together in one place: presidents and prime ministers, CEOs of the biggest companies (think Google, Microsoft, Reliance, BlackRock, Pfizer), central bankers, academics, NGO leaders, journalists, and sometimes activists and young leaders.

They meet to talk about the biggest problems humanity faces: climate change, economic inequality, artificial intelligence and technology’s future, geopolitical conflicts (Russia-Ukraine, Middle East, US-China tensions), pandemics and health systems, job displacement due to automation, energy transitions, gender equality, and more.

The official mission is straightforward: **“Improving the state of the world”**. How? By creating a space for **public-private cooperation** — getting governments and businesses to work together on solutions. The WEF is very clear: it does **not** make laws, set policies, or govern anything. It sees itself as a neutral **facilitator of dialogue**.

Most people first hear about the WEF because of the annual meeting in Davos, Switzerland every January — that’s the famous one with snow, chalets, private jets, and world leaders walking around in scarves. But the WEF also runs year-round initiatives, regional summits, online events, and publishes some of the most widely-read global reports.

Official website: weforum.org
About page (what they actually say they do): https://www.weforum.org/about/world-economic-forum/

2. The History – How the WEF Actually Started and Grew

It all began in 1971 with a single person: Prof. Klaus Schwab. He was a German mechanical engineer and economist (born 1938) who had studied at Zurich, Fribourg, and Harvard. Schwab noticed that European companies were lagging behind American ones in management practices, innovation, and leadership. So he created the **European Management Forum** — basically a conference to bring European executives together with American ideas.

The first meeting was held in Davos, a small ski resort town in the Swiss Alps. Only about 450 people came — mostly European business leaders. Davos was chosen for privacy, good hotels, and because Switzerland is neutral.

By 1987, Schwab changed the name to **World Economic Forum** because the scope had grown far beyond Europe. Now it included global economics, politics, trade, social issues, environment, and emerging technologies.

Key milestones in growth:

• 1990s: End of Cold War, rise of globalization → WEF becomes a major stage for world leaders.
• 2001: After 9/11, they held an emergency meeting in New York to show solidarity.
• 2008–2009: Financial crisis → Davos focused on recovery and regulation.
• 2016: Schwab coins the term “Fourth Industrial Revolution” (AI, robotics, biotech) in a famous book.
• 2020: COVID-19 → Launches “The Great Reset” initiative to rebuild economies more sustainably and fairly.

Today the WEF has:

• 11 specialized Centres (AI & Machine Learning, Climate, Cybersecurity, Energy Transition, etc.)
• Regional offices in New York, San Francisco, Beijing, Tokyo
• Partnerships with UN, World Bank, IMF, WTO, and thousands of companies
• Thousands of participants every year across events

Official history page: https://www.weforum.org/about/history/

3. Klaus Schwab – The Man Behind the WEF

Klaus Schwab was the founder, executive chairman, and driving force for 55 years (1971–2025). He studied engineering and economics, taught at the University of Geneva, and wrote many books. His biggest idea is **stakeholder capitalism** — companies should serve not just shareholders, but employees, customers, communities, and the environment too.

Schwab and his wife Hilde also founded the Schwab Foundation for Social Entrepreneurship, which supports social innovators worldwide. He created the Global Shapers Community — a network of young leaders under 30 who organize local projects.

In April 2025, at age 87, Schwab resigned as Chairman and Board member with immediate effect. The official reason was his age and belief that the organization needed new leadership for the future. (More on the surrounding controversies later.)

Official profile: https://www.weforum.org/about/klaus-schwab/

4. What Really Happens at Davos? (The Annual Meeting)

The Annual Meeting in Davos-Klosters, Switzerland (usually 20–24 January) is the WEF’s signature event — and the one most people associate with the organization.

Who attends:

• 50–60 heads of state / government
• 1,000+ CEOs and business leaders
• Journalists, academics, NGO heads, young leaders
• Total: 2,500–3,000 participants

What actually happens:

• Plenary sessions: Big public speeches (live-streamed)
• 300+ panel discussions and workshops
• Private bilateral meetings (e.g., Modi–Biden, Xi Jinping reps, etc.)
• Report launches (Global Risks, Future of Jobs, etc.)
• Networking: Dinners, coffee chats, walks in the snow, late-night parties

Real impact examples:

• 1994: Early Israel–PLO peace talks groundwork
• 1998: Idea of G20 first floated
• 2000: GAVI vaccine alliance launched
• Many climate and health partnerships started here

Critics say it’s just rich people talking while the world burns. Supporters say it’s one of the few places where serious global problems get real attention.

Meetings archive: https://www.weforum.org/meetings/

5. The Most Important WEF Reports (What Policymakers Actually Read)

The WEF produces some of the most cited global reports in the world. Here are the big ones:

• Global Risks Report (annual) — ranks top risks (2025: state-based armed conflict #1). Link
• Future of Jobs Report — predicts skills that will disappear or emerge. Link
• Top 10 Emerging Technologies — yearly list of breakthrough tech. Link
• Reports on gender parity, energy transition, AI governance, nature economy, etc.

These reports are data-heavy, based on surveys of thousands of experts, and are used by governments, companies, and investors worldwide.

6. Controversies & Criticisms – The Honest Side

No organization this big is without criticism. Here’s the real list:

• Elitism: Only the ultra-rich and powerful attend. Tickets cost tens of thousands; private jets and security create a bubble.
• Great Reset: Launched 2020 to rebuild post-COVID economies sustainably. Many interpreted it as a plan for global control (WEF strongly denies this).
• Workplace allegations: Early 2025 whistleblowers claimed toxic culture, abuse of power, financial irregularities. Independent probe cleared major wrongdoing but noted minor issues.
• Leadership transition: Schwab’s April 2025 resignation happened amid scrutiny; interim co-chairs (Larry Fink & André Hoffmann) appointed August 2025.
• Corporate influence: Big companies pay large fees to be partners — critics say it gives business too much sway over global agendas.

The WEF responds by saying it is transparent, publishes everything, and exists only to facilitate open discussion — not to rule the world.

7. Does the WEF Actually Matter? Real Influence vs. Hype

Yes — but not in the way conspiracy videos claim. The WEF doesn’t control governments or economies. What it does do:

• Shapes global conversations (AI ethics, climate action, digital divide)
• Launches partnerships (GAVI vaccines, climate funds)
• Publishes reports that influence policy and investment
• Creates rare neutral space for enemies to talk quietly

It’s not a shadow government — it’s a very influential networking and idea platform. Love it or hate it, ignoring it means missing how many global trends start or get amplified.