Davos WEF Update #1.4, 1/19/20

WEF claims to do good. Others doubt it.

As the World Economic Forum oligarchs convene in Davos, Switzerland, check out the heart-felt doubts of an Occupy Wall Stree activist invited to Davos, Micah White. The Anonymous guy above reading the China Daily might as well be me, but I am upfront, hardly anonymous.

Klaus Schwab, the WEF founder, would be held in vile contempt by neoliberal champion Milton Friedman. Here’s why:

• Friedman and orthodox neoliberal ideologues regard unfettered capitalism as Pareto Optimal (best of all possible worlds), meaning that we can’t do any better than that! All this impressive theoretical effort derives from a grand-theory deduction (Tinbergen), not from induction based on data, such as today’s news. And tomorrow’s.
• Schwab regards corporations as potentially, not yet actually, responsible and transparent social agents accountable to stakeholders. Costco provides a model mission and, yup, Walmart may be heading in that direction. Ray Dalio and even BlackRock, the largest investment corporation, have publicly declared such revision in their mission statements, with results. Corporate Social Responsibility does occasionally happen, so, as economist Kenneth Boulding states: “If it exists, it is possible.” Don’t go crazy yet: Profits provide the engine of capitalism (Shaikh).

Fossil fuels may provide the signal as to which of these models prevail. Divestment in coal is the litmus test for financial behemoths. Watch the coming Aramco IPO for insights about the future of these models of corporate behavior. The Aramco IPO will assess such variables as the adequacy of corporate governance, transparency and integrity, and, critically, the long-term price of a barrel of oil. The Saudi oil powerhouse appears to produce sweet product at the cost of $4/barrel. Their proven reserves appear to be 268 billion barrels and the sunk infrastructure investment is enormous, and vulnerable to sabotage. Do the math. As I write, the market price is about $65/barrel and the IPO has been valued at $1.85 trillion, to the chagrin of the Crown Prince who expected over $2 trillion to support his tottering feudal welfare state. See my notes. The worst event for Aramco: Petroleum reserves become stranded assets as climate destruction takes over.

Micah says:

At the heart of the World Economic Forum is the conviction that decisions are best made when the interests of all stakeholders are served. Explaining this concept in 1971, Schwab wrote:

Administrator

http://profwork.org

Professor Emeritus of Sustainability Wayne Hayes retired from Ramapo College of New Jersey on July 1, 2015. Wayne’s concern merges two of his principle interests: first, capitalism’s drive for profit and growth; second, the consequences: inequality, fiscal crisis, exclusion, ecocide, and, looming on the horizon, catastrophic climate change. Capitalism has the upper hand and will not capitulate voluntarily: Aporia, no path through it — or might there be: Such speculation motivates my work. Join me!

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Professor Emeritus of Sustainability Wayne Hayes retired from Ramapo College of New Jersey on July 1, 2015. Wayne's concern merges two of his principle interests: first, capitalism's drive for profit and growth; second, the consequences: inequality, fiscal crisis, exclusion, ecocide, and, looming on the horizon, catastrophic climate change. Capitalism has the upper hand and will not capitulate voluntarily: Aporia, no path through it --- or might there be: Such speculation motivates my work. Join me! View all posts by Administrator