The World Economic Forum's 14th Annual Meeting of the New Champions, often known as the Summer Davos took place in Tianjin, China from June 27 to 29 this year. Approximately 1,500 government officials, business leaders, and influential figures from various sectors from over 90 countries attended the event. The forum is themed Entrepreneurship: The Driving Force of the Global Economy, focusing on discussions about providing new impetus for innovation, promoting economic growth, and shaping a more equitable, sustainable, and resilient global economy.
The essence of entrepreneurship lies in its constant pursuit of innovation and change. It is precisely because of the presence of free market competition that people can enjoy a wide range of products and services. Through different competitive bids, sustainable growth opportunities are created, thus keeping the market dynamic. In the realm of market competition, there is no permanent top player and no fixed business model. Technological advancements further accelerate the pace at which names in the list of the richest people are constantly changing, and seemingly unremarkable competitors can enter and excel in the market at any time and from anywhere.
In true free market competition, businesses enjoy the freedom to enter it and embrace new challenges. Like participants in a sporting event, not everyone emerges victorious, yet it fosters an appreciation for the world's diversity and individual distinctions, promoting equality and communication. Sporting contests, despite intense athlete rivalry, also enhance self-awareness regarding strengths and weaknesses. While opponents may differ, they are not simply viewed as adversaries. The dedication required in competition enhances productivity and propels ongoing societal evolution. Competition sparks ambition, nurturing collective growth and development with a forward-looking perspective, enabling fruitful endeavors like business collaboration, joint research, and vibrant urban interactions to thrive on this bedrock.
However, geopolitical conflicts are dividing the global community and undermining the rule of law and trust that market economies require. Intense regional disputes have resulted in the excessive expansion of executive and judicial powers. Market competition seems to have transformed into a monopolistic game where manipulation takes precedence, no longer allowing businesses to participate at will. Unequal opportunities in competitions have led to difficulties in employment or unemployment, pushing many individuals back into poverty, and dealing a heavy blow to social welfare. As social inequality intensifies, people are drifting further away from freedom.
The world has undergone significant changes in the environment. Entrepreneurs conducting business are inevitably exposed to increasing levels of distrust, insecurity, and hate speech, leading to growing concerns about their mental well-being. On June 19, a special event was held at the United Nations headquarters in New York to commemorate the International Day for Countering Hate Speech. Despite their efforts to move forward, businesses are facing an increasing number of risks that are beyond their control. Geopolitical conflicts erupt frequently, prices in various countries continue to rise, the living standards of ordinary people decline, and the consumption market stagnates, hindering industry innovation. As such, many economists hold a pessimistic view of the global outlook. There are also concerns about the necessity of business schools and the MBA profession.
Access to quality education, proper work, and community safety are essential conditions for personal and family development. However, factors such as economic recession, disease outbreaks, and climate crisis are threatening everyone. Faced with global interests, decision-makers from various countries need to strengthen coordination and cooperation and restrain the impulse to intervene in markets and businesses. Nothing is truer than the words spoken by Klaus Schwab at the inception of the WEF, that there is an urgency to develop new mechanisms that strengthen international cooperation in today's world. Hopefully, there will be new ideas at this year's Summer Davos that contribute to safeguarding free competition.
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Yi Wang is Head of Global Development Program and Senior Researcher at ANBOUND, an independent think tank.
