World leaders at Davos: Demand for equity in governance

Given the skewed imbalance of a world where the rich become richer and the poor are made poorer by the day, there is an inescapable perception that decisions made at the elite Davos club in Switzerland stand little chance of becoming reality. So, it is valid to pose the question: what is the point of 40 heads of state and government, Taoiseach Enda Kenny among them, gathering for the 45th World Economic Forum?

This year’s meeting is set against a depressing backdrop of global conflict, terrorism, disease, climate change and rapidly escalating poverty on a scale never before witnessed.

The yawning gulf between rich and poor was graphically illustrated this week by an Oxfam report showing that the wealthiest 1% will own more than 50% of the world’s wealth by 2016.

Ironically, the rich-poor gap is reflected at the forum where a ticket for this event, the biggest of its kind, costs an incredible $17,000.

Yet politicians, business leaders and powerful vested interests regard it as a not-to-be-missed occasion, an opportunity to rub shoulders with international movers and shakers, a chance to influence decisions of global import.

But is it? According to its critics, Davos is little more than a self-congratulatory talking shop, a place people go to be seen.

If the truth lies somewhere between these opposing views, it is hard to avoid the opinion that discussions in the rarefied mountain air are essentially more aspirational than substantial, something the organisers will strongly deny.

While most people tend to see such events from a global rather than a local viewpoint, the decision-makers at Davos should not forget that if their deliberations are to have any meaning they must impact on local communities.

Take, for example, the price of oil, a topic expected to be high on the agenda. It is hard to see what influence, if any, they can bring to bear on the cost of petrol and diesel in this country.

Ultimately, the price at the pumps is governed by a cartel of European governments, with the Fine Gael-Labour administration leading the charge, mercilessly hitting the unfortunate customer where it hurts by raking off most of the cost of a litre through taxes, thus keeping prices artificially high.

At a time when the cost of crude oil is at its lowest in years and still falling, it would be a welcome economic gesture if, when the Taoiseach returns, he gave Irish drivers a break on petrol and diesel prices.

The degree to which Mr Kenny will be swayed by arguments relating to the poor of this world is also debateable considering how he has consistently favoured better-off sections of Irish society with taxation policies which mirror the theme of excessive inequality now being discussed at Davos.

Harsh measures continue to militate against those who suffered heavily under a regime of austerity which decimated society, effectively creating a new poor and forcing tens of thousands of young people to flee the country.

As the time-worn saying goes, charity begins at home. So, from both the ‘global’ and ‘local’ perspective, a far greater sense of equity in governance is demanded.