Geopolitical issues dominate the World Economic Forum

The annual meeting of the World Economic Forum is taking place at a critical moment due to geopolitical landscapes, climate issues, economic uncertainty in some regions caused by conflicts, and rapid technological transformation.

The forum should not merely be viewed as a high-profile gathering of political and corporate elites, but also as a critical arena in which global priorities are articulated, policy narratives are debated, and strategies are offered and coordinated.

It is important to point out that the overlapping dynamics that are discussed — such as geopolitical issues, climate disruption and economic opportunities — affect how governments, markets and societies interact.

The significance of the upcoming meeting also lies in its potential to be a platform for agenda-setting in global governance. One criticism might be that the forum does not produce any binding agreements that can be implemented. But we ought to remember that it does facilitate dialogue among actors who exert significant and decisive influence over financial flows, security issues and technological development. As a result, informal multilateral spaces such as the forum are critical.

One of the key topics on the WEF agenda expected to dominate discussions is the geopolitical landscape. The international order is no longer defined by a single dominant power. There are several major powers that pursue their security and economic interests through unilateral actions or partnerships.

Some may argue that this trend has intensified conflicts and uncertainty. Some current issues to consider can be the prolonged war in Ukraine and its effects on European security architecture, the confrontation between Israel and armed groups across the Middle East, and the strategic rivalry between the US and China over Taiwan and advanced semiconductor supply chains. 

The most critical issues are economic resilience, climate transition, geopolitical issues and emerging technologies, which are intertwined.

Dr. Majid Rafizadeh

Issues related to military deterrence, cyber security, economic sanctions and technological sovereignty are no longer peripheral concerns in international politics. That is why the forum is likely to focus on these issues. For example, cyber operations attributed to state actors in Russia, Iran and North Korea, and the US and European sanctions regimes against Russia and Iran, have reshaped global energy and financial markets.

Smaller states face heightened vulnerability as they navigate competing centers of power, illustrated by countries such as Serbia balancing between the EU and Russia. Therefore, the forum can be important in offering a venue where representatives of these actors can engage in direct discussion. Although such dialogue does not eliminate conflict, it can remove some miscalculations.

Another important issue is economic resilience; at the forum, discussions on economic resilience are more likely to emphasize the strengthening of financial systems against external shocks, diversification as well as investment in strategic industries.

More attention ought to be given to emerging economies, which face the challenge of sustaining development. For example, countries such as Egypt, Pakistan and Argentina illustrate the strain created by volatility and debt-servicing obligations. Also, countries such as Nigeria and Bangladesh confront vulnerabilities linked to climate-related disruptions to agriculture.

To assist these countries, access to capital, technology and markets remains the most important issue.

Another critical issue on the agenda is most likely the energy transition and the broader challenge of climate change. Climate disruption is impacting food security, public health, migration patterns and political stability. For instance, severe droughts in the Horn of Africa, catastrophic flooding in some regions, record-breaking heatwaves in southern Europe, and rising sea levels threatening island nations such as the Maldives and Tuvalu, show how climate change is already reshaping social and economic conditions.

At the same time, the global economy is still deeply dependent on fossil fuels, making this a challenge to transition. As a result, climate finance — investment required to modernize infrastructure, deploy renewable energy and support adaptation in vulnerable regions — can be vital.

Developing states often lack the fiscal capacity to undertake such transitions and transformations without substantial external assistance. For example, sub-Saharan African countries such as Kenya and Senegal have ambitious solar and wind projects but face high borrowing costs. At the forum, discussions will likely focus on mobilizing large-scale capital, reducing investment barriers. These conversations also show the growing recognition of environmental issues and how they are interconnected with long-term economic stability and geopolitical security.

Finally, another important topic is emerging technologies, especially artificial intelligence and advanced digital systems. Technological advances, such as AI-driven automation, are radically transforming production; some argue that these are growing at a pace unmatched in previous industrial revolutions.

Another dimension is the transformation of work and education as automation changes labor demand, and societies have to reconsider how skills are developed. Discussions in Davos are therefore more likely to address the creation of shared regulatory principles as well as investment in digital infrastructure.

While critics argue that the forum privileges elite perspectives, we should consider its capacity to shape discourse.

In a nutshell, the World Economic Forum meeting is taking place at a time of significant global challenges. The most critical issues are economic resilience, climate transition, geopolitical issues and emerging technologies, which are intertwined. Decisions made in one domain reverberate across others. Whether the forum’s influence ultimately leads to more inclusive and sustainable outcomes depends on whether dialogue translates into action.

Bio:

• Dr. Majid Rafizadeh is a Harvard-educated Iranian-American political scientist. X: @Dr_Rafizadeh