Frankly Speaking: WEF sending strong message by not inviting Russia to Davos, says forum’s Borge Brende

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Updated 23 May 2022
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Frankly Speaking: WEF sending strong message by not inviting Russia to Davos, says forum’s Borge Brende

  • WEF president says violations by Iran and Israel are not comparable to those committed in Ukraine
  • Brende believes current war could end up as Moscow’s “Afghanistan or Vietnam”
  • Davos summit more timely than ever as ‘global challenges require global solutions’

DAVOS, Switzerland: The president of the World Economic Forum has said the Geneva-based organization is sending a strong signal to Moscow by not inviting Russian officials and businesses to this year’s Davos summit while issuing an invitation to the Ukrainian leader to address the gathering.

“When it comes to Russia, we chose not to invite Russian business or Russian officials because there are limits,” Borge Brende told Katie Jensen, the host of Frankly Speaking, the Arab News talk show which features interviews with leading policymakers and business leaders.

“Russia has broken basic humanitarian law and international law. They are not sticking to the UN Charter and we have seen so many atrocities.”




Borge Brende with Katie Jensen on Frankly Speaking. (AN photo)

At the same time, Brende said, the WEF will not only have Ukraine President Volodomyr Zelensky “on video” but also several of his ministers.

“From Kyiv we will have two of his deputy prime ministers. We also have the foreign minister in Davos,” he said, adding that some chief executives will be coming together to form a group of CEOs for Ukraine to “secure the rebuilding of the country.”

Defending the WEF’s decision, he said: “The key for unlocking this is with (President Vladimir) Putin and the Kremlin. We need to see that they are taking steps to again rejoin compliance with international law before they will be reinvited to Davos. We have a strong moral obligation to also send this kind of signal in such a situation.”

Brende appeared on “Frankly Speaking” on the eve of the first in-person WEF annual meeting since the start of the COVID-19 pandemic. This is the first time the event, which kicked off on Sunday, is being held in Davos in May.

He denied that for an organization that prides itself on its impartiality and reputation as a bridge builder, the decision not to invite one side amounts to a failure on the WEF’s part to encourage debate.

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Brende said it is true that for the last 50 years the WEF has always tried to bring leaders together, but “there are limits.”

“It’s an ongoing war in Ukraine, where we see that children are being killed in their schools every day. You see women being raped. We see war crimes taking place and there is no willingness for dialogue,” he said.

“Davos is about willingness to find common solutions, and if countries at least are willing to sit down and discuss the future, then it is something else. But today we see no kind of this willingness from Russia’s side. That’s why we’re very sad that we cannot have this dialogue. Hopefully in the future, but not today.”

Brende, a former foreign minister of Norway, dismissed comparisons between the charges of atrocities Israel is accused of committing against Palestinian civilians and those being leveled against Russia in Ukraine. He also denied that this is because Ukraine is seen as closer to home for many Europeans.




WEF President Borge Brende. (AN photo)

“It is unacceptable what is now happening in Ukraine and the war is ongoing,” he reiterated, explaining why inviting Russia to the annual meeting is not the same thing as, say, inviting Israel or Iran.

“When it comes to Israel and the situation in the Palestinian areas, it is at least some willingness to dialogue. We’ve seen it through the Abrahams Accords, but we also see in Davos that we are bringing together business leaders from both Israel and the Palestinian side in an initiative called ‘Breaking the Impasse.’ And they’re sitting there with global politicians, but also politicians from these areas to discuss if there is a way forward for establishing a two-state solution. At least there is a dialogue going on and we hope for future solutions.”

Asked if he thought the recently imposed sanctions on Russia were enough to end the conflict or whether an expanded NATO was the solution, Brende said: “I think Russia is incredibly surprised by the strength of the Ukrainian army. They were supposed to take Kyiv, the capital, in two, three days. Kharkiv, the second largest city, in two, three days. They have seen the resistance among the Ukrainians that, I am sure, has surprised them and that is why they’re pulling back too.”


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In the months to come, Brende said, it is likely that Russia will continue with its attacks. “But Ukraine can easily turn into the Vietnam of Russia, or Afghanistan of Russia,” he said.

“When more than 40 million people are fighting back so strongly as the freedom-seeking Ukrainians, Russians will have a huge challenge. It shows that even a very modern and a very strong army cannot kill the freedom-fighting people around the world. I think this is a lesson for many countries to bring with them and reflect over.”

The WEF says its annual meeting in Davos provides “a unique collaborative environment” for public figures and global leaders to “reconnect, share insights, gain fresh perspectives and build problem-solving communities and initiatives.” However, critics say the event has become more of a show featuring politicians sticking to pre-prepared scripts. 

Brende countered that this year’s summit would see progress made on many of the most important topics. “We will, for example, have new coalitions when it comes to fighting climate change,” he said.

“We will focus a lot on trade and investments. We know that there will be no real economic recovery without a trade recovery, so that’s why it’s so important that we also have trade ministers, 30 of them together with (World Trade Organization chief Ngozi Okonjo-Iweala), saying that no new tariffs, no more protectionism and no more bans on exporting food.”

“Many of the challenges that we are faced with cannot be sold without business. So, with the 1,400 CEOs and chairs in Davos, I am pretty sure we are going to make progress,” Brende said, adding that “25 percent of the participants are women — it should have been 50, but we are making progress.”

Brende disputed the claim that the WEF summit in Davos has a perception problem, made most recently by the Financial Times newspaper, which said this week that the organization does not project the right image.

“I think we definitely are able to bring together leaders from all walks of life. It’s easy to be critical, but I think the past has also shown that the World Economic Forum has a positive impact,” he said.

“It was in Davos, for example, where the Global Alliance for Vaccines and Immunizations (GAVI) was launched (in 2001). It was here where (the anti-apartheid icon) Nelson Mandela came to Europe for the first time and launched the economic plan for South Africa.

“This time around, it is really about how to make sure that the weak recovery does not end in a new recession. It is to make sure that we walk the talk from COP26 in Glasgow. Business leaders, 120 of them, will commit to going net zero by 2050. So, this is really the place where corporate and governmental leaders are coming together, making a difference.”

Watch the full Frankly Speaking episode below:

 

 

As 2,500 members of the global elite descend on Davos, Brende said this year’s meeting could not be more timely because “global challenges need global solutions.”

“Unfortunately, because of the polarized world, we don’t see as much collaboration to really solve wars, climate change and also a weakening recovery,” he said. “But we will try in Davos to get leaders together, and at least mobilize the private sector to support in these very critical areas.”

Brende also acknowledged the reality of the continuing COVID-19 pandemic, saying that it is “very important to be preparing for the next one, because we will see new diseases and pandemics unfortunately in the coming decades too.

“We moved much closer to nature. In just the last 10 years, we have lost wilderness across the world the size of the country of Mexico, so animals and human beings are much closer. And then we will also see more diseases like this.

“And we should not forget that we’re not out of the woods yet. China, the second largest economy in the world, is partly locked down now in some of the biggest and largest cities in the country, and this will also have an impact on the global economy because China is growing slower and the demand from China will of course go down.”

Looking to the future, Brende said: “We have to learn from this pandemic, that we have to have medicine, we have to have medical equipment much closer than before. We can’t wait for weeks for this to arrive. We have to be able to step up vaccination fast. We know that we have paid a huge price: 15 million people have lost their lives so far in this pandemic.”


Myanmar ethnic rebels say captured junta western command

Updated 12 sec ago
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Myanmar ethnic rebels say captured junta western command

  • Ann would be the second regional military command to fall to ethnic rebels in five months
  • Fighting has rocked Rakhine state since the Arakan Army attacked security forces in November last year
BANGKOK: A Myanmar ethnic rebel group has captured a military regional command in Rakhine state, it said, in what would be a major blow to the junta.
The Arakan Army (AA) had “completely captured” the western regional command at Ann on Friday after weeks of fighting, the group said in a statement on its Telegram channel.
Ann would be the second regional military command to fall to ethnic rebels in five months, and a huge blow to the military.
Myanmar’s military has 14 regional commands across the country with many of them currently fighting established ethnic rebel groups or newer “People’s Defense Forces” that have sprung up to battle the military’s 2021 coup.
Fighting has rocked Rakhine state since the AA attacked security forces in November last year, ending a ceasefire that had largely held since the putsch.
AA fighters have seized swathes of territory in the state that is home to China and India-backed port projects and all but cut off state capital Sittwe.
The AA posted photos of a man whom it said was the Ann deputy regional commander, in the custody of its fighters.
AFP was unable to confirm that information and has contacted the AA’s spokesman for comment.
AFP was unable to reach people on the ground around Ann where Internet and phone services are patchy.
In decades of on-off fighting since independence from Britain in 1948 the military had never lost a regional military command until last August, when the Myanmar National Democratic Alliance Army (MNDAA) captured the northeastern command in Lashio in Shan state.
Myanmar’s borderlands are home to myriad ethnic armed groups who have battled the military since independence for autonomy and control of lucrative resources.
Last month the UN warned Rakhine state was heading toward famine, as ongoing clashes squeeze commerce and agricultural production.
“Rakhine’s economy has stopped functioning,” the report from the UN Development Programme said, projecting “famine conditions by mid-2025” if current levels of food insecurity were left unaddressed.

Joe Biden approves $571 million in defense support for Taiwan

Updated 29 min 31 sec ago
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Joe Biden approves $571 million in defense support for Taiwan

  • The US is bound by law to provide Taiwan with the means to defend itself despite the lack of formal diplomatic ties between Washington and Taipei
  • Taiwan went on alert last week in response to what it said was China’s largest massing of naval forces in three decades

WASHINGTON: US President Joe Biden on Friday agreed to provide $571.3 million in defense support for Taiwan, the White House said, while the State Department approved the potential sale to the island of $265 million worth of military equipment.
The United States is bound by law to provide Chinese-claimed Taiwan with the means to defend itself despite the lack of formal diplomatic ties between Washington and Taipei, to the constant anger of Beijing.
Democratically governed Taiwan rejects China’s claims of sovereignty.
China has stepped up military pressure against Taiwan, including daily military activities near the island and two rounds of war games this year.
Taiwan went on alert last week in response to what it said was China’s largest massing of naval forces in three decades around Taiwan and in the East and South China Seas.
Biden had delegated to the secretary of state the authority “to direct the drawdown of up to $571.3 million in defense articles and services of the Department of Defense, and military education and training, to provide assistance to Taiwan,” the White House said in a statement without providing details.
Taiwan’s defense ministry thanked the United States for its “firm security guarantee,” saying in a statement the two sides would continue to work closely on security issues to ensure peace in the Taiwan Strait.
The Pentagon said the State Department had approved the potential sale to Taiwan of about $265 million worth of command, control, communications, and computer modernization equipment.
Taiwan’s defense ministry said the equipment sale would help upgrade its command-and-control systems.
Taiwan’s defense ministry also said on Saturday that the US government had approved $30 million of parts for 76 mm autocannon, which it said would boost the island’s capacity to counter China’s “grey-zone” warfare.


US Senate approves Social Security change despite fiscal concerns

Updated 42 min 55 sec ago
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US Senate approves Social Security change despite fiscal concerns

  • The Senate in a 76-20 bipartisan vote shortly after midnight approved the Social Security Fairness Act
  • The House of Representatives last month approved the bill in a 327-75 vote

WASHINGTON: The US Congress early on Saturday passed a measure to boost Social Security retirement payments to some retirees who draw public pensions — such as former police and firefighters — which critics warned will further weaken the program’s finances.
The Senate in a 76-20 bipartisan vote shortly after midnight approved the Social Security Fairness Act, which would repeal two-decades-old provisions that can reduce benefits for people who also receive a pension.
The House of Representatives last month approved the bill in a 327-75 vote, which means that Senate approval sends it to Democratic President Joe Biden to sign into law. The White House did not immediately respond to a question about whether Biden intended to do so.
The bill will overturn a decades-old change to the program that had been made to limit federal benefits to some higher-earning workers with pensions. Over time, growing numbers of municipal employees such as firefighters and postal workers also saw their payments capped.
Most Americans do not participate in pension plans, which pay a defined benefit, and instead are dependent on what money they can save and Social Security. Just one in ten US private sector workers have pension plans, according to Labor Department data.
The new provisions impact about 3 percent of Social Security beneficiaries — totaling a little more than 2.5 million Americans — and the workers and retirees affected by these provisions are key constituencies for lawmakers and their powerful advocacy groups have pushed for a legislative fix.
Some of them could receive hundreds of dollars more a month in federal benefits as a result of the bill, retirement experts said.
Some federal budget experts warned the change could hurt the program’s already shaky finances as the bill’s price tag is approximately $196 billion over the next decade, according to an analysis by the non-partisan Congressional Budget Office.
Emerson Sprick, associate director of economic policy at the Bipartisan Policy Center, said in an interview, “the fact that there is such overwhelming support in Congress for exactly the opposite of what policy researchers agree on is pretty frustrating.”
Instead of scrapping the current formulas for determining retirement benefits for these workers, revisions have been floated, as well as more accurate communication from the Social Security Administration on how much money these public sector employees should expect.
The Committee for a Responsible Federal Budget, a nonpartisan fiscal think tank, is also warning the extra cost will affect the program’s future.
“We are racing to our own fiscal demise,” the group’s president, Maya MacGuineas, said in a statement.
“It is truly astonishing that at a time when we are just nine years away from the trust fund for the nation’s largest program being completely exhausted, lawmakers are about to consider speeding that up by six months.”
Republican Senator Ted Cruz on the Senate floor on Wednesday said the bill as written will “throw granny over the cliff.”
“Every senator who votes to impose $200 billion dollars of cost on the Social Security Trust Fund, you are choosing to sacrifice the interest of seniors who paid into Social Security and who earned those benefits,” he said.
Bill supporters said Social Security’s future can be addressed at a later time.
Asked about the solvency implications pf this legislation, Senator Michael Bennet, a supporter of the bill, said: “Those are much longer term issues that we have to find a way to address together.”


US authorizes military sales of more than $5 billion to Egypt

Updated 49 min 45 sec ago
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US authorizes military sales of more than $5 billion to Egypt

  • Cairo is one of the largest recipients of US security aid since its peace treaty with Israel in 1979

Washington: The United States government on Friday authorized the sale of more than $5 billion in military equipment to Egypt, which has become an increasingly close partner in mediating the Gaza crisis despite serious human rights concerns.
The State Department informed Congress it had approved the sale of $4.69 billion in equipment for 555 US-made M1A1 Abrams tanks operated by Egypt, $630 million in 2,183 Hellfire air-to-surface missiles and $30 million in precision-guided munitions.
The sale “will support the foreign policy and national security of the United States by helping to improve the security of a Major Non-NATO Ally country that continues to be an important strategic partner in the Middle East,” according to a statement.
US President Joe Biden took office in 2021 vowing a harder line on Egypt over human rights concerns under President Abdel Fattah El-Sisi, but his administration has repeatedly gone ahead with arms deals with Egypt.
Cairo is one of the largest recipients of US security aid since its peace treaty with Israel in 1979.
Egypt and the United States have worked increasingly closely since the outbreak of the war in Gaza in 2023, with Cairo playing a mediating role.
In addition to the sales to Egypt, the State Department also authorized $295 million in equipment for Taiwan, $170 million in bombs and missiles for Morocco, and $130 million in uncrewed aircraft systems and armored vehicles to Greece.
The Taiwan authorizations were announced shortly after US President Joe Biden announced $571.3 million in new military aid to the self-ruled island, which China claims as part of its territory and has vowed to retake — by force, if necessary.
The US Congress can still block the sales, but such attempts are usually unsuccessful.


Nearly half of taxpayers worldwide don’t see their money being spent for public good — survey

Updated 21 December 2024
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Nearly half of taxpayers worldwide don’t see their money being spent for public good — survey

  • 52% of respondents globally agreed that taxes were a contribution to the community rather than a cost
  • Only 33% individuals agreed that tax revenues in their country were spent for the betterment of public

ISLAMABAD: Almost half of taxpayers across the globe do not see their money being spent for the betterment of public, a recent global survey found, in contrast with the idea of citizens agreeing to pay taxes in exchange for services.

The poll was conducted by the Association of Chartered Certified Accountants (ACCA), a globally recognized professional body providing qualifications and advancing standards in accountancy.

The survey found that 52% of the respondents globally agreed that taxes were a contribution to the community rather than a cost, while 25% disagreed with this. The rest chose to stay neutral.

“Only 33% agree that tax revenues in their country are spent for the public good,” the ACCA said on Friday, adding that 46% respondents disagreed with the notion.

In addition, it said, 32% agreed that public services and infrastructure were a fair return for the taxes they paid, with 50% disagreeing and the rest staying neutral.

Pakistan has one of the lowest tax ratios in the world, according to the World Bank. The South Asian country’s failure to generate tax revenues in higher amounts stems from the fact that it has a narrow tax base, low compliance rate, an inefficient tax administration and massive tax evasion.

The South Asian country aims to collect an ambitious $46 billion through taxes this financial year (July 2024 till June 2025). Authorities say they have identified 4.9 million taxable persons in the country by using modern technology.

“Trust in tax systems is crucial for sustainable development and prosperity, and the findings of this survey highlight the challenges that many governments across the world face in building it,” said Helen Brand, the ACCA chief executive.

“We look forward to using this important work to engage with policymakers, tax authorities and civil society to drive evidence-based policy initiatives to build effective and trusted tax systems.”