Rising Powers Balance Domestic Politics and International Economy at Davos

Policy Alert #158 | February 7, 2018

World leaders, celebrities, activists, and business moguls rubbed elbows at the World Economic Forum Annual Meeting in Davos, Switzerland, under the theme “Shared Future in a Fractured World.” Indian Prime Minister Narendra Modi gave the opening speech of the forum, while US President Donald Trump provided the closing remarks. Despite the forum’s lofty goals of international cooperation and development, some representatives of Rising Powers struggled to balance their domestic policy initiatives as well.


INDIA
In his speech, Prime Minister Modi used the opportunity to unabashedly promote India for foreign direct investment amidst his prescription for preventing and healing fractures between nations. “If you want wealth with wellness, work in India; If you want peace with prosperity, live in India; If you want health with whole life, be in India.”

CHINA
Liu He, member of the Chinese Communist Party Political Bureau and right-hand advisor of Chinese President Xi Jinping, gave a talk on the “three critical battles China is preparing to fight,” as a follow-up to Xi’s opening remarks last year that promised economic opening in China: “I want to stress that China is a force for world peace, development and the international order. China remains a developing country despite its economic progress. We will run our own business well, and on that basis, we are ready to work with the rest of the international community to champion a vision for global governance that features extensive consultation, joint contribution and shared benefits. Together, we will stand firm for multilateralism, for the multilateral trading regime, and for common development and progress.”

JAPAN
After US President Trump’s suggestion that the US was interested in returning to the Trans-Pacific Partnership (TPP) multilateral trade agreement in an interview on the sidelines of Davos, Japanese Prime Minister Shinzo Abe responded positively to the news. “I will call on President Trump to ensure that the United States leads free and open TPP rules with Japan in a steady manner,” Abe said in a House of Councillor Budget Committee meeting.

RUSSIA
Economic Development Minister Maksim Oreshkin was optimistic about foreign investment in Russia in an interview at Davos. “We see a positive trend in foreign direct investment in the past several years. This volume exceeded $20-25 billion in 2017,” he said. Other Russian leaders had warm words for the efforts of the Russian delegation at the event. Deputy Prime Minister Arkady Dvorkovich commented that, “The Russia House has become an effective place to work, hold meetings, and promote Russia’s interests around the world.” Anton Kobyakov, advisor to President Vladimir Putin, described Russia House as “a major attraction for Russian and foreign representatives of the business elite, representatives of the state authorities, business and scientific circles, and opinion leaders.”

SOUTH KOREA
South Korean Foreign Minister Kang Kyung-wha attended the forum to promote the 2018 Winter Olympics being held in PyeongChang. In an interview with Reuters on the possibility that North Korea could undertake provocative actions despite the Olympics and success of recent talks, Kang assured the public that, “We approach these talks with all contingency scenarios in mind and are prepared to deal with whatever may happen.” The Ministry of Foreign Affairs also reported that in a closed-door debate at the forum, Kang advocated for governments to “harness new technology and innovation” in order to raise private financing for UN development goals.

BRAZIL

RPI acknowledges support from the MacArthur Foundation and the Carnegie Corporation of New York for its activities.