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Klaus Schwab's World Economic Forum in Davos exposed as place where 'cronyism can flourish'

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Klaus Schwab's World Economic Forum in Davos exposed as place where 'cronyism can flourish'

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There are many organizations in the world where business leaders and governments work closely together. But few are said to be as polarizing as the World Economic Forum and its founder, Klaus Schwab.

On the one hand, almost every January a few thousand leading business executives, politicians, journalists and others flock to the miniscule alpine village of Davos-Klosters, Switzerland, for WEF’s exclusive invitation-only annual meeting. TV, radio and print reporters fawn over the so-called good and the great. 

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The likes of Jamie Dimon, CEO of JPMorgan Chase, and Microsoft founder Bill Gates, were both there for the event that lasted from Jan. 15-19, and both were seen on TV. On the surface, things might seem benign. But scratch the surface, and you see something quite different.

“What is interesting when you look at how the WEF was started,” says Alan Mendoza, executive director of the Henry Jackson Society, a policy think tank in London, England. “It wasn’t random.”

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World Economic Forum founder Klaus Schwab speaks at Davos on Jan. 16, 2024. (Fabrice Coffrini/AFP via Getty Images)

In 1971, with the help of the European Commission (EC), a governmental body, Klaus Schwab, then a business professor at the University of Geneva, founded the European Management Forum and invited 450 business executives to a conference in Davos. The idea was to get European leaders to learn something about how American business works. 

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“You had institutional backing,” Mendoza says. “That then attracts business leaders and then politicians.” He also thinks one of the most shocking achievements by Schwab the “scale of what he has achieved.”

However, there are worries about the WEF’s future after Schwab, who is 86. So far he hasn’t named a successor and that in turn has the organization’s backers concerned about the future of WEF, according to a 2023 Politico report. 

The Alpine resort of Davos ahead of the 54th annual meeting of the World Economic Forum, on Dec. 30, 2023. (Fabrice Coffrini/AFP via Getty Images)

The Politico report cites insiders as saying he’s like a monarch who will stay in the job until death. In a similar way, he also employs family members in high-ranking posts within the not-for-profit organization. The report also states that insiders wouldn’t talk on the record as they feared reprisals such as being banned from WEF events or even being fired just for talking.

Other insiders, both current and former employees, anonymously compare Schwab to Russia’s dictator, according to a Guardian newspaper report last year. “Klaus picks his leaders using the same criteria Putin uses to pick deputies for the state duma: loyalty, guile, sex appeal,” the paper quotes one of the sources as saying. Another source in the report called Schwab’s top team “nobodies.”

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World Economic Forum founder Klaus Schwab listens as German Chancellor Olaf Scholz addresses the delegates in Davos, Switzerland, May 26, 2022. (Reuters/Arnd Wiegmann)

By 1987, it had morphed into the WEF, and from then, seemingly nothing could stop it. And that’s where critics say the first problem with WEF arrives.

As the WEF has grown in popularity, they say it looks more and more like an exclusive networking club for the mega-rich and super-powerful. “It is nothing more than an official mechanism by which cronyism can flourish,” says Ben Habib, co-deputy leader of British political party Reform UK. “The event legitimizes cronyism.” 

Others who have attended Davos, as the annual event is known, see it as a competitive event where the guests play a game of high-stakes social climbing where the winners get cushy high-paid jobs at the top of massive multinational corporations. 

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Facebook and Blackrock are examples of where former U.K. government ministers have taken on senior roles. Nick Clegg, former leader of Britain’s center left Lib-Dems, is now the president of global affairs at Meta. Similarly, for a while, George Osbourne, former chancellor of the exchequer (finance chief) for the U.K. government, took a role as a senior adviser to the giant U.S.-based fund management company Black Rock. 

Private jets are lined up at Zurich Kloten Airport as participants arrive for the World Economic Forum in Davos, on Jan. 18, 2024. (Piero Cruciatti/Anadolu via Getty Images)

Habib says it’s no wonder big business and top politicians are deeply in bed with each other. And it is viewed by many as a powerful yet unaccountable organization that doesn’t reflect the needs or wants of all society. Instead, it has an invitation-only policy to the annual event.

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A logo of the World Economic Forum at its headquarters in Geneva, Switzerland, Jan. 9, 2024. (Lian Yi/Xinhua via Getty Images)

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IndeedWEF has the following statement on its website: “Our activities are shaped by a unique institutional culture founded on the stakeholder theory, which asserts that an organization is accountable to all parts of society.” 

The WEF didn’t immediately respond to a request for comment on the seeming discrepancy between its statement about serving everyone and having an invite-only policy.

“The little guy is not represented anywhere in these major international forums,” Mendoza says. The issue with WEF is its huge scale, he says. “If we have problems with [the little guy being silent], it is not a WEF problem, it’s a broader capitalism issue.”

Another issue that has irked its critics revolves around demands at past WEF events calling for a greener global economy and the idea of reducing the world’s use of carbon-based energy. That contrasts with the 1,000 private jets that reportedly ferried in the big shots this year for the annual meeting, which ended Jan. 19. Those private jets emit 10 times more carbon than commercial jetliners and 50 times more than trains. 

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Volodymyr Zelenskiy, Ukraine’s president, second right, with, from left, Steve Schwarzman, Blackstone CEO, Jamie Dimon, CEO of JPMorgan Chase, and Lakshmi Mittal, CEO of ArcelorMittal, during a meeting with business leaders in Davos, Switzerland, on Tuesday, Jan. 16, 2024. (Chiara Albanese/Bloomberg via Getty Images)

Mendoza notes that while a couple of decades ago the secretive Bilderberg Group had been the  focal point of conspiracy theorists, now WEF has become a lightning rod for similar ideas. Habib concurs, stating, “There are many people who think Schwab controls the world. I’m not one of them.” But he doesn’t like the people who Schwab hangs out with. “He has embedded himself with the ‘great and good,’ but they ain’t so great and ain’t so good.”

Observers say a turning point was in 2021 after the previous year’s COVID-19 pandemic. It was then that the idea of “the Great Reset” took off. “The pandemic represents a rare but narrow window of opportunity to reflect, reimagine, and reset our world to create a healthier, more equitable, and more prosperous future,” Schwab said. And he spoke about wealth taxes. 

Instead of something new and better happening in the economy, something as old as the hills manifested; The richest people got even richer, and the poor got poorer. Earlier this month, Forbes magazine found that the top five wealthiest people in the world had collectively more than doubled their wealth. These include investing guru Warren Buffett and Amazon founder Jeff Bezos.

Meanwhile, U.K.-based charity Oxfam says five billion people got poorer over the same period, primarily due to surging inflation and war.

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Klaus Schwab gestures during a press conference in Cologny, near Geneva, Switzerland, Jan. 10, 2017. (Laurent Gillieron/Keystone via AP)

The WEF didn’t respond immediately to Fox News Digital’s request for comment on the huge global wealth shift.

Mendoza wonders why WEF doesn’t fight back on its poor public image. “You have to ask, is there any sense that it continues with this negative image?” he says. “I am not sure it is a sensible place for anyone to want to be.”

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Hungarian veto proves EU needs less unanimity, says new Dutch PM

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Hungarian veto proves EU needs less unanimity, says new Dutch PM

Hungary’s last-minute veto on the €90 billion loan to Ukraine highlights the need for the European Union to move away from unanimity, Rob Jetten, the new prime minister of the Netherlands, said on his first trip to Brussels since taking office.

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“The new Dutch goverment is in favour of less and less decision-making by unanimity on the European level,” Jetten told a group of media, including Euronews, on Tuesday.

“This is a clear example of why that is important because we cannot explain to our constituents that Europe is sometimes way too level in reacting to great issues that affect us all,” he added.

Jetten called on his Hungarian counterpart, Viktor Orbán, to abide by the delicate deal that the 27 EU leaders reached in December after fraught negotiations. The compromise saw Hungary, Slovakia and the Czech Republic promising the necessary unanimity to amend the EU budget rules in exchange for being exempted from the joint borrowing.

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Officials and diplomats in Brussels believe that by vetoing a critical piece of the loan at the last stage of the legislative process, Orbán has breached the principle of sincere cooperation that binds the bloc’s decision-making.

“If you reach political agreement on the Council level, we expect every member state to uphold that agreement. And if not, it’s a big task for the European Commission take action,” Jetten said.

In the new coalition programme, the Netherlands calls for the “simplification” of the Article 7 procedure that can deprive member states of voting rights when they commit grave violations of the rule of law. Hungary has been under Article 7 for years, but there has never been sufficient political momentum to move to the harder enforcement phase.

“It is absolutely necessary that we support Ukraine in the months to come to make sure they can continue their fight against Russian aggression,” Jetten went on.

“With less and less American support for the Ukrainians in terms of money and weapons, it is up to the Europeans to deliver.”

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Orbán’s veto centres on the interruption of Russian oil supplies through the Druzhba pipeline, which Kyiv says was attacked by Russian drones on 27 January and has remained non-operational since then.

But Orbán says Ukrainian President Volodymyr Zelenskyy has deliberately shut down the pipeline for “political reasons” to influence the results of the upcoming Hungarian elections. Orbán trails in opinion polls by double digits.

Caught between the two rival camps, the European Commission has asked Zelenskyy to repair Druzhba and Orbán to lift his veto. Meanwhile, Hungary and Slovakia have proposed a fact-finding mission to inspect the damaged section of the pipeline.

“We expect the European Commission to solve this issue,” Jetten said. “If it’s helpful to have any fact-finding missions on the pipeline to fix this issue, I’m open to it. But everything begins with: a political agreement at the Council level is a political agreement.”

‘Too early’ for a date on Ukraine’s accession

Among the first debates facing Jetten as premier is the future of enlargement, a topic on which the Netherlands has expressed well-known reservations in the past.

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Zelenskyy is advocating for a specific date for Ukraine’s accession to be enshrined in a prospective peace deal, something that could offset the pain of territorial concessions. Last week, he openly suggested 2027 as an aspirational benchmark.

The Commission says it cannot commit to a clear-cut date but is working on legal avenues to revamp the notoriously complex process and ensure the Ukrainian people have greater certainty in their path to membership.

Asked about the potential reform, Jetten said enlargement should be reconsidered from a “geopolitical perspective” but urged the bloc to be “careful” with next steps, warning that the essence of the European project risks being undermined.

“We are very open-minded to look into broader support for these (candidate) countries, but moving too fast is not the way to move forward,” the premier said.

“I think, at the moment, it’s not possible to set a date for enlargement with Ukraine, but it is possible to talk with them, and I will do that with President Zelenskyy, (about) how Europeans can support Ukraine in the important reforms that they have undertaken. But at this moment, it is too early to set the date.”

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Jetten also touched upon the US-Iranian strikes on Iran, which have pushed the Middle East into uncharted territory. Wholesale gas prices have soared in reaction to the war, prompting fears that Europe might soon face a prohibitive bill to refill its underground reserves, which are running low after the heating season.

“Obviously, the Iran war can have a big impact on strategic reserves, not only in Europe but also in Asia. So we have to prepare ourselves for any case that this war will continue for many more weeks and impact the strategic reserves in the Netherlands and abroad,” he said, noting extra measures would be taken “if necessary”.

“I think the broader concern is what this war and everything that’s going on in the Strait of Hormuz is going to affect in terms of pricing.”

‘The Netherlands is back’

Jetten’s D66 party has formed a minority goverment with the liberal VVD and the conservative CDA, all of which support European integration. His tenure puts an end to the fractious four-party coalition headed by the right-wing, Eurosceptic Party for Freedom (VVD) of Geert Wilders, which was marked by constant disagreements.

Among the priorities, his executive has pledged to ramp up defence spending, simplify regulation, promote new technologies and expand renewable energy.

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“As a founding (member) and the fifth (largest) economy within the EU, the Netherlands is back at the table to work closely together with everyone here in Brussels and our allies within the EU,” Jetten said.

“We see a lot of opportunities to strengthen the European economy and competitiveness, and also to make sure that we do our job with a lot of tax-based money to invest in the European defence and the European defence industry.”

Jetten and the other 26 leaders are heading for a no-holds-barred fight on the next Multiannual Financial Framework (MFF), the bloc’s seven-year budget. Brussels has proposed a €2-trillion template that some capitals consider politically unpalatable.

Where to cut spending will be a major fracture line. Germany, the Nordics and the Baltics want a greater focus on strategic priorities, while Spain, Italy and Eastern Europe want to preserve the prominence of agriculture and cohesion funds.

The Dutch premier made it clear that the next budget should focus on the big transitions shaping the continent’s future: defence, technology and climate.

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“A modern MFF doesn’t mean an exploded MFF in terms of numbers,” he said.

“The Netherlands will look into the numbers very closely, and we will have a lot of debate on this topic in the months to come.”

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Iran Live Updates: Global Markets Tumble After U.S. Warns War Could Last Weeks

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President Trump is meeting Germany’s leader at the White House after sidelining his European allies in the decision to attack Iran. Oil and gas prices surged and stock markets fell, after U.S. and Israeli officials signaled that strikes on Iran would intensify.

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Ambassador Huckabee describes ‘best option’ for Americans looking to flee Israel

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Ambassador Huckabee describes ‘best option’ for Americans looking to flee Israel

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U.S. Ambassador to Israel Mike Huckabee described what he believes is the “best option” for Americans looking to flee Israel amid the ongoing unrest across the Middle East. 

Huckabee said overnight, “We are getting a lot of requests regarding evacuating from Israel from American citizens who are currently in Israel or who have family here,” and that there are “very limited” options available. 

“As of now, the best is utilizing Israel’s Ministry of Tourism shuttle bus to Taba, Egypt and getting flights from there or going on to Cairo for flights back to the U.S.,” Huckabee said on X. “Not sure when Ben Gurion Airport in Tel Aviv will reopen.  Hopefully soon, but even when it does, there will be VERY limited flights with priorities to those who already were ticketed by El Al. Doubtful that other airlines will fly in/out for a while.” 

“The Ministry of Tourism is operating buses to Taba. That crossing is further away, but it’s open 24/7. There are some flights from Taba, but there are also options to get to Cairo, and it’s operating normally except to Middle Eastern countries. To get out, it’s the best option for now,” Huckabee added. 

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U.S. Ambassador to Israel Mike Huckabee, left, and emergency personnel at the site of an Iranian missile strike on a residential building in Tel Aviv, Israel, on March 1, 2026. (Alex Brandon/Pool/AFP via Getty Images; Ronen Zvulun/TPX Images of the Day/Reuters)

Huckabee also said he does not recommend Americans exit via Jordan at this time, as “Flights are not consistent and access across the Allenby crossing has limited hours.” 

“All of our personnel from [the] embassy are sheltering in place, but I realize you may need to get people out and back home and not continue to incur hotel costs,” the ambassador wrote. 

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People take shelter in Tel Aviv on Sunday, March 1, 2026, after Iran launched missile barrages following attacks by the U.S. and Israel on Saturday. (Ronen Zvulun/Reuters)

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U.S. Embassy Jerusalem said in a statement early Tuesday morning that it is “not in a position at this time to evacuate or directly assist Americans in departing Israel.” It also mentioned the Israeli Ministry of Tourism’s buses to Taba.

“To be added to the passenger list for a shuttle, you must register via the Ministry’s evacuation form,” it said.  

A firefighter works to put out a fire in Tel Aviv after Iran launched missiles into Israel on Saturday, Feb. 28, 2026. (Tomer Appelbaum/Reuters)

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“The U.S. Embassy cannot make any recommendation (for or against) the Ministry of Tourism’s shuttle. If you choose to avail yourself of this option to depart, the U.S. government cannot guarantee your safety,” it added. 

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