INTERNATIONAL

As WEF 2026 kicks off, can dialogue still provide answers?

Awani International 18/01/2026 | 06:14 MYT
The World Economic Forum logo was displayed ahead of its annual meeting in Davos, Switzerland. (WEF)
DAVOS: Simply by following the daily news - wars, tariffs, trade restrictions and diplomatic disputes - it is clear that cooperation between countries, including long-standing allies, is growing more fragile and distrustful.

It is against this backdrop that the World Economic Forum (WEF) 2026 opens in Davos, Switzerland. The world now faces overlapping threats: increasingly aggressive geo-economic competition, prolonged geopolitical tensions, and technological advances that are moving far faster than many governments' ability to regulate and govern them.

A day before WEF 2026 begins, United States President Donald Trump once again announced new tariffs. This time, the European Union was targeted following its efforts to block the U.S. from "buying" Greenland. Not long before that, Trump also announced a 25 per cent tariff on Iran's trading partners, a move whose implementation remains unclear. Yet, judging from the record of the Trump 1.0 era and his current approach, the message is unmistakable: pressure on China remains the primary objective.

Meanwhile, Europe is no stranger to crisis. The war in Ukraine continues, and its impact extends far beyond the two countries directly involved. In reality, it has become a conflict between Russia and Europe as a whole. Since the outbreak of the war, Ukrainian President Volodymyr Zelensky has rarely missed a WEF meeting, bringing the suffering of his people to the global stage. Russia, by contrast, remains largely isolated, despite the presence of delegations in a limited capacity.

In Southeast Asia, developing countries are now walking an ever-thinner tightrope. The region must tread carefully to avoid being drawn into the orbit of any one major power. In an increasingly polarised world, remaining neutral is no easy task, especially when economic and geopolitical pressures arrive simultaneously.

It is therefore no surprise that WEF 2026 has adopted the theme "The Spirit of Dialogue". Dialogue has always been at the heart of the forum, but this year the tone is different. WEF stresses that dialogue can no longer stop at discussion alone, it must be translated into action.

But what kind of action? Acting alone in a world that is growing ever more divided? Or seeking new, more realistic forms of collective engagement suited to today’s global landscape? Is the world moving towards a new equilibrium, or sliding into a deeper and more entrenched cycle of crisis?

WEF's flagship reports, including the Chief Economists' Outlook, the Global Cooperation Barometer and the Global Risks Report, paint a consistent picture. The world is operating under layered structural pressures, with interconnected global risks that are increasingly difficult to address in isolation. Economic growth is expected to be moderate and uneven, weighed down by high debt levels, trade tensions and geopolitical instability.

At the same time, artificial intelligence and digital technologies promise significant gains in productivity. Yet these promises come with risks: disruption to labour markets, widening skills gaps, and unresolved questions around technology governance and ethics.

Which brings us back to the fundamental question: can dialogue truly provide the answer? Based on the realities outlined in these reports, meaningful, sustained dialogue, backed by concrete action, may not be an easy solution. But in a world that is becoming ever more divided, it remains the only plausible path to preventing crisis from becoming the new normal.
#trade #AI #geopolitics #WEF #economy