Klaus Schwab Resigns as Chairman of World Economic Forum After Five Decades

Klaus Schwab, the German economist and engineer who founded the World Economic Forum (WEF) in 1971, has stepped down as Chairman and Board Member of the Geneva-based institution. Schwab, now 87, was the long-time face of the annual Davos summit, where global political and business elites gathered to discuss global economic, political, and social trends. His departure marks the end of an era, as the WEF navigates challenges ranging from criticism of elitism to internal cultural controversies and the broader backlash against globalisation.

Key Developments and Background

• Resignation Date: Announced on April 21, 2025; accepted on April 20, 2025
• Position: Klaus Schwab resigns as Chair and Board Member of WEF
• Interim Chair: Vice Chairman Peter Brabeck-Letmathe assumes interim leadership
• Founded WEF in 1971: Aimed to unite policymakers and CEOs to address global issues

Davos: From Idea to Icon

• Location: Annual meeting held in Davos, Switzerland, since 1971
• Purpose: Promote dialogue on pressing economic and political issues
• Participants: Political leaders, CEOs, intellectuals, and celebrities
• Symbolism: Became an emblem of globalisation and international cooperation

Criticism and Controversies

Criticised as Elitist

• Viewed as detached from everyday realities of the average citizen
• Accused of being a “talking shop” for global elites

Internal Culture Scrutiny

• Wall Street Journal in 2024 reported alleged harassment and discrimination at WEF
• WEF denied the allegations but initiated a law firm-led internal review

Global Backlash Against Globalisation

• Events like Brexit (2016) and Trump’s election reflected rising discontent
• Schwab predicted this backlash as early as 1996, warning about economic and social instability

Challenges to the Forum’s Relevance

Geopolitical Disruptions

• Global financial crisis (2007–09)
• Russia-Ukraine war (2022 onwards)
• U.S. protectionist policies under Trump and successors

Perceived Decline

• Analysts argue WEF is losing influence amid rising populism and nationalism

Schwab’s Legacy and Vision

• Anticipated economic discontent and rise of populism before it became mainstream

Co-wrote a 1996 op-ed with Claude Smadja highlighting,

• Public anxiety in industrial democracies
• The rise of populist leaders due to loss of control over global economic trends