India’s Growing Role in Shaping a New Global Consensus
The annual gathering of the global business and intellectual elite at the World Economic Forum in Davos has historically been a platform for discussing and addressing the challenges facing the world. However, in recent years, the Davos Consensus has been called into question, particularly in light of the COVID-19 pandemic, which has exposed the need for a fundamental reassessment of old assumptions.
Davos was initially conceived as a reflection of the optimism surrounding the global economic order shaped by hyper-globalization. It was believed that increased economic interconnectedness would lead to marginal conflicts, global identities, and effective global institutions. However, the forces of geopolitics are now playing a significant role in shaping today’s world. Conflicts such as the Ukraine war and the Israel-Hamas conflict, along with threats to critical sea-lanes and the China challenge, have forced policymakers to view the crisis-ridden world through a different lens.
The pandemic and its aftermath have further highlighted the need for self-reliance in critical sectors and minimal exposure to complex supply chains overseas. This shift has led many nations to reconsider the benefits of economic globalization and challenge the notion of hyper-globalization in the late 1990s and early 2000s.
The rise of figures like Donald Trump in the United States signaled a departure from the Davos Consensus. Trump challenged the political basis of economic globalization and America’s role in it, emphasizing the uneven benefits of globalization for his country. Other leaders, such as Florida governor and former presidential candidate Ron DeSantis, have labeled Davos a threat to freedom, with concerns of its influence being influenced by China.
While global trade was disrupted during the pandemic, recent months have shown signs of recovery. However, ongoing conflicts and crises threaten this recovery. For instance, Yemen’s Houthis have utilized cheap drones and armaments to disrupt world trade, resulting in increased energy prices and further uncertainty regarding the global economic recovery.
In this changing landscape, it is crucial for platforms like the World Economic Forum to better reflect the reality of the Global South and nations like India, which are poised to drive global growth. India’s presence at Davos this year demonstrates its desire to showcase its economic strength, innovation, and technological advancements. India’s ability to form trust-based partnerships with multiple players amid geopolitical turmoil highlights its growing self-confidence and the willingness of others to invest in the country.
As External Affairs Minister S. Jaishankar pointed out, globalization has led to economic concentrations in certain regions. He emphasized the need to restore global diversity and for India to evolve a new consensus that challenges the status quo.
India finds itself in a geopolitical and geo-economic sweet spot at a time when China’s influence has diminished. With the developed world looking inward and China’s aggressive external orientation, there is a leadership vacuum waiting to be filled. From climate and energy transitions to the regulation of artificial intelligence, India and other nations of the Global South should play critical roles in shaping the global agenda.
As the world grapples with a post-pandemic reality, it is essential for global platforms and forums to adapt to the changing dynamics and include diverse perspectives. India’s moment has arrived, and it must seize the opportunity to help shape a new global consensus that reflects the realities of a crisis-ridden world and ensures a more inclusive and sustainable future.
In conclusion, India’s growing role at Davos and in global affairs highlights its potential to contribute to shaping a new global consensus. As the world faces unprecedented challenges, the perspectives and contributions of nations in the Global South, including India, must be acknowledged and integrated into the global agenda. With its economic strength, innovation, and willingness to forge trust-based partnerships, India has the opportunity to fill the leadership vacuum and foster a more inclusive and diverse global order.
