
Mind the gap: World Economic Forum founder Klaus Schwab has warned against the concentration of wealth in too few hands.
Those on the outside might imagine that the business leaders who gather in Davos each year to chew the fat are concerned only about enriching themselves. Critics might imagine that the company bosses, jetting to the World Economic Forum 5,000 feet up in the Swiss Alps in their helicopters, mink-clad trophy wives in tow, are oblivious to the struggles of the poor. But they would be wrong.
As the rich and powerful make their last-minute preparations for their week up the magic mountain, they want the message to be sent out that they understand about inequality. They feel the pain. Truly they do.
The evidence for the "Davos gets it" line comes from the annual risk report compiled by the WEF. It asks 700 of its members what they think will be the most pressing threats to the global economy over the coming decade. Inequality is seen as the most likely risk.
Klaus Schwab, who created the Davos meeting in the 1970s, is pleased about that finding. As a good old-fashioned social democrat, he wants his members to take a history lesson and realise that capitalism cannot survive if income and wealth become concentrated in too few hands. For much of the 20th century, the more far-sighted business leaders realised this. They understood that their workers needed reasonable wages so that they could buy the goods and services they were making. They grasped the idea that a market system in its rawest form was incompatible with democracy and so acquiesced while some of the rough edges were knocked off via progressive taxation, welfare states and curbs on capital. Deep down, they feared that the Russian revolution would provide a template for disaffected workers in the west.













