- January 26, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
Subject : Economy
- The Great Reset is an initiative by the World Economic Forum.
- It has been conceptualised by the founder and executive chairman of the WEF, Klaus Schwab, and has evolved over the last few years.
- It is based on the assessment that the world economy is in deep trouble.
- The current situation has been made worse by factors, like the effects of the pandemic on global society, the unfolding technological revolution, and the consequences of climate change.
- The world must act jointly to revamp all aspects of our societies and economies, from education to social contracts and working conditions.
- Every country must participate and every industry must be transformed.
- In short, there is a need for ‘Great Reset’ of capitalism.
Three Components of Great Reset
- First is the question of reforming capitalism. WEF has been at the forefront of calling for “stakeholder capitalism” that looks beyond the traditional corporate focus on maximising profit for shareholders.
- Second, WEF is certainly right to focus on the deepening climate crisis. Climate sceptics have been ousted from Washington and President Biden has rejoined the 2015 Paris accord on mitigating climate change.
- Third is the growing difficulty of global cooperation that WEF wants to promote. The era of great power harmony that accompanied the liberalisation of the global economy at the turn of the 1990s has yielded place to intense contestation. The contestation is not just political but increasingly economic and technological.