From January 15 to 19, Davos brought together the world's leading CEOs and politicians, including the Argentine president.
Switzerland, where this exclusive alpine resort is located, is being affected by global warming and many ski resorts are running out of snow.
And as has been the case in recent years, the latest global risk report from the Global Economic Forum also highlights the problem of climate change.
The climate emergency, as well as the loss of biodiversity, plays a central role.
But also war conflicts, geopolitical disputes, extreme events, population displacements, social unrest, artificial intelligence and the dissemination of fake news.
This situation forces us to rethink the economy and revisit the main concepts that underpin decision-making.
If investment decisions only focus on efficiency, we will be in trouble.
In a context marked by multiple crises, the idea of resilience takes center stage, and the primacy of efficiency induces erroneous decisions.
Resilience is one of the virtues of complex systems and uncertainty raises the need to strengthen the system, which is contrary to the traditional economic vision, which gives efficiency the prominent place, as well as the prevailing short-term vision that prioritizes immediate gain and prevents the search for consensus.
The environmental proposals of our leaders are far from global discussions.
According to the Argentine president, the Davos agenda “is contaminated by socialism.”
The obscurantism of the government, chaired by a leader who identifies with the ideas of the extreme right, is allied with the short-termism of the “red circle”, a new alliance that ignores the critical moment that current society is going through.
Resilience involves facing unforeseen events, enduring turbulence and surviving shocks.
Any disaster affects stocks (losses of assets) and flows (reduces product).
Therefore, resilience also implies recognizing the limits of the planet, such as protecting glaciers or preserving native forests.
The report highlights the risk of increased polarization and its potential impact on economic deterioration.
But the emergency does not imply that citizens are, inevitably, defenseless in the face of extreme situations.
Societies with social protection systems are better prepared to face crises.
Every containment network tends to protect the most vulnerable.
Therefore, resilience is not only linked to robustness and adaptation but also to the capacity for transformation.
Hence the importance of consensus and institutional construction: prevention reduces uncertainty.
If the rules are consensual and subject to change, the system is more likely to be more robust.
This raises the importance of the social contract, understood as a mechanism recognized by the different sectors of society to face challenges and risks.
If we continue to advance over the limits of the planet and if the “breaking points” are reached, adaptation may not be enough.
From resilience we go to disaster.
And, as we approach the point of no return, the greater the perception of “every man for himself.”
Leonardo Stanley is an Associate Researcher at the Center for State and Society Studies - CEDES
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