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Davos 2025: Azerbaijan fortifies its standing

Politics Analytics 21 January 2025 21:16 (UTC +04:00)
Davos 2025: Azerbaijan fortifies its standing
Elchin Alioghlu
Elchin Alioghlu
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BAKU, Azerbaijan, January 21. The avenues of the quaint yet internationally celebrated and prestigious Swiss town of Davos have once more transformed into a theater for grand aspirations and profound anxieties.

The World Economic Forum (WEF), which began yesterday and runs until January 24, brings together global leaders, business giants, and public figures, symbolizing not only global dialogue but also a reflection of humanity's most pressing issues.

At the heart of the forum’s discussions are ongoing wars, climate catastrophes, and the promises and perils of artificial intelligence, alongside key political developments like the return of Donald Trump to the political scene.

This year’s forum, held for the 55th time, takes place amid ongoing global upheaval, with military conflict in Ukraine, challenges in the Middle East, and the escalating climate crisis. Yet, despite these crises, Davos remains a space for searching for solutions, even when they may seem utopian.

The forum's opening coincided with Donald Trump's inauguration, a moment of significant importance. The U.S. president addressed participants online, with his words expected to be analyzed for their prophetic implications.

Trump's return to the White House represents a resurgence of chaotic populism, with promises to restore protectionism, ramp up pressure on both allies and competitors, and reassess global trade rules, which have sparked immediate concerns in the business community.

Davos participants are trying to predict how Trump's policies could affect the global economy. Preliminary estimates suggest that his approach could reduce global economic growth by four-tenths of a percentage point, placing additional burdens on economies like Germany and China, which are already facing challenges.

Germany, China, and other emerging economies are already assessing the potential impact of Trump's trade policies, with significant losses on the horizon. Meanwhile, investors are scrambling to adapt to a new reality, where shifting U.S. priorities could once again disrupt the global trade balance.

“Trump’s first term led to increased trade and investment, but the current situation is much more complicated. Protectionism could become an obstacle, not a stimulus, for the global economy,” World Economic Forum (WEF) President Børge Brende noted.

Jeremy Jurgens, Managing Director of the WEF, emphasized the need to rethink economic growth, stating, "We need growth that prioritizes people's well-being. It’s not just about GDP figures; it’s about quality of life, fighting inequality, and addressing environmental challenges."

These statements resonate like a manifesto for a new era, where economic success is no longer just about export volumes and productivity, but also about the world’s commitment to the planet and the people who inhabit it.

The release of a report on global risks ahead of the forum prompted deep reflection. Experts ranked interstate armed conflicts as the top threat, emphasizing that the war in Ukraine is not just a regional issue but a warning for the entire world. Following this are extreme weather events and a growing geo-economic conflict, which are impacting both wealthy and impoverished nations alike.

Risks are no longer a distant concern—they are quickly becoming a harsh reality. While Davos may not have all the answers, it remains a crucial space to confront these challenges and begin the search for solutions.

As these discussions unfold, a key theme of the forum is the impact of artificial intelligence (AI), a technology that has already transformed the world by creating millions of new jobs but also rendering many professions obsolete. Davos offers a platform to view this as a challenge, suggesting the need for retraining, adaptation, and helping people find new roles in this new reality.

According to a study by the American company Workday, creativity, empathy, and the ability to make ethical decisions are set to become the most valuable skills in the labor market. The key question remains: are governments and companies ready for these changes?

Davos 2025 represents a critical turning point in the world's transformation. The central question is whether we dare to face these challenges head-on and turn them into opportunities.

The year 2025 brings with it a sense of alarming uncertainty. Global divisions are widening, geopolitical alliances are shifting, and economies are grappling with stagnation, rising debt, and escalating global inequality.

The World Economic Forum (WEF) in Davos is putting pressure on political and business leaders to find a way out of this relentless cycle. Forum President Børge Brende captured the essence of the situation: "This is happening against the most challenging geopolitical and geoeconomic backdrop in decades."

Elections in several key countries, including the United States, have revealed a growing disillusionment with traditional elites, with voters increasingly favoring those promising radical change. This shift sends a clear message: the world is weary of the status quo. But the pressing question remains—how can we find a path forward without escalating conflicts or dismantling international cooperation?

While Davos may not offer a full resolution to these crises, it serves as an essential space for understanding their complexities and beginning the search for viable solutions. This forum, where the most difficult issues are debated and solutions sought, has the potential to guide humanity toward a future course of action.

The 55th World Economic Forum (WEF) in Davos has once again captivated global attention. From January 20 through 24, government officials, leaders of major corporations, and representatives of civil society organizations gathered in the iconic Swiss city to address some of the most pressing challenges of our time. On the agenda are critical issues such as revitalizing global economic growth, tackling climate change, managing the effects of the technological revolution, and navigating the consequences of ongoing global conflicts.

For Azerbaijan, Davos is not just another international event but an important opportunity to strengthen the country’s global position, attract investments, and build strategic partnerships.

The forum also addresses conflicts that continue to shake the international community. Ukrainian President Volodymyr Zelenskyy has returned to Davos, underscoring the ongoing war in Ukraine. Simultaneously, the humanitarian crisis in Gaza and growing tensions in the Middle East remain at the forefront of discussions.

According to the WEF's report, interstate armed conflicts and geo-economic tensions are among the top global threats in 2025. This stark reality highlights the deep divisions within the global system and challenges forum participants to take decisive steps in mitigating these risks.

Artificial intelligence (AI) and automation technologies are dramatically reshaping the world. Projections suggest that by 2030, these innovations will create 170 million new jobs. However, they will also render 92 million existing professions obsolete, highlighting the disruptive potential of this technological revolution.

Davos discussions not only center on the risks posed by global changes, but also on the opportunities they present. A major topic is how to adapt education systems and retrain millions of workers to navigate the labor market of the new era. The forum is examining ways to equip people with the skills needed for an increasingly digital and automated world.

Jeremy Jurgens, Managing Director of the WEF, underscored the profound opportunity the technological revolution offers humanity. "The era of technology demands a new level of cooperation. This is not just about economics—it is a matter of human survival," he noted. His words emphasize the critical need for collective action in facing the challenges posed by technological advancement.

For Azerbaijan, Davos provides a unique platform to advance its non-oil sector, focusing on opportunities in green energy, transit potential, and technological innovations. Azerbaijan’s strategic vision, particularly regarding the transformation of Karabakh and the Eastern Zangezur Economic Zone into a green hub, is attracting growing international attention.

In 2024, Azerbaijan signed landmark agreements with ACWA Power (Saudi Arabia) and Masdar (UAE) for the construction of solar and wind power plants with a combined capacity of 700 megawatts. Davos 2025 offers an ideal setting for showcasing these projects and securing further investments.

Azerbaijan’s strategic location along the Middle Corridor positions it as a vital transit hub connecting Europe and Asia. The country's growing importance is heightened by the sanctions placed on Russia, which further solidify Azerbaijan’s role in regional and global trade routes. Projections indicate that Azerbaijan could see a 20 percent increase in transit revenues over the next three years. Davos provides a favorable environment for advancing discussions and forging new agreements with key partners, including China, Kazakhstan, and Türkiye.

For Azerbaijan, addressing climate change is of paramount importance, both from a strategic and economic standpoint. The ongoing decline in the Caspian Sea's water levels, recurring droughts, and soil degradation are all having a profound impact on the country’s agricultural sector, which remains a vital part of its economy.

Azerbaijan’s active participation in climate change discussions at Davos creates valuable opportunities for collaboration with international organizations. By partnering with institutions like the Green Climate Fund, Azerbaijan can initiate and implement projects focused on reforestation, sustainable water management, and combating desertification.

Davos is not just a venue for dialogue; it is a powerful platform for Azerbaijan to demonstrate its growing potential to the world’s leaders. At this forum, the country can highlight its achievements in green energy, transit infrastructure, and technological innovation, while simultaneously strengthening its geopolitical and economic standing.

Davos 2025 represents a pivotal moment for Azerbaijan—a forum not only for international cooperation but also a gateway to the realization of its long-term strategic goals. The initiatives launched at this global event will undoubtedly contribute to the further development of Azerbaijan and enhance its role on the global stage.

More than just a gathering of world leaders, Davos 2025 marks an important turning point for Azerbaijan. It presents a unique opportunity to solidify the country’s position as a key player in the fields of energy, logistics, and technology. By advancing national interests and attracting strategic investments, Azerbaijan has the potential to leverage this platform as a catalyst for its sustained growth and development.

In a world marked by global upheaval and uncertainty, Azerbaijan proves that even a relatively small nation can make a significant impact on the international stage. The key to this success lies in its ability to adapt, innovate, and focus on the future. Davos is not just a venue for dialogue; it is an exceptional opportunity to turn national ambitions into global achievements.

Amidst ongoing global conflicts, Azerbaijan has showcased its peacekeeping potential. The country’s successful reintegration of Karabakh, the rebuilding of war-torn infrastructure, and its active promotion of peace initiatives have set a powerful example for others. Azerbaijan’s involvement in mediation efforts, such as providing humanitarian assistance to Ukraine and contributing to the restoration of conflict-affected regions, further bolsters its role in international diplomacy.

In addition to its diplomatic strides, Azerbaijan is enhancing its position in the global energy security landscape. The Southern Gas Corridor (SGC), which exported 12 billion cubic meters of gas in 2024, has become a key instrument in reducing the European Union's reliance on Russian energy. New agreements under discussion in Davos could not only increase Azerbaijan’s gas exports but also expand the range of its energy partnerships, solidifying the country as an indispensable energy partner for Europe.

Davos also presents Azerbaijan with a unique opportunity to forge stronger ties with leaders from developing regions in Asia and Africa. In 2024, Azerbaijan already signed agreements with Indonesia and Pakistan to supply agricultural products. This forum offers an ideal setting for further negotiations that could enhance Azerbaijan’s reputation as a reliable and vital exporter.

As the WEF noted, extreme weather events and climate change will be among the primary global threats in 2025. These issues are especially pressing for Azerbaijan, where droughts and desertification pose significant risks to the agricultural sector.

Davos provides a crucial platform for attracting international investment in climate-related projects. Engaging with the Green Climate Fund could facilitate the implementation of initiatives such as forest restoration and water management in regions like Karabakh and Shirvan.

At the same time, Azerbaijan can play a pivotal role in regional environmental efforts, such as the protection of the Caspian Sea ecosystem and the sustainable management of transboundary water resources. By doing so, Azerbaijan can further enhance its international standing as a responsible and proactive environmental leader.

Davos is not merely a venue for discussion; it is a powerful platform for Azerbaijan to showcase its potential and deepen its international alliances. By emphasizing its advancements in green energy, transit, and technology, Azerbaijan is strengthening its position on the global stage.

As the world gathers at this hub of global cooperation, Azerbaijan's active participation in Davos 2025 provides crucial opportunities for the country to achieve its strategic goals. The initiatives presented at this forum will not only drive Azerbaijan’s economic growth but also bolster its standing in international affairs.

Beyond discussions of geopolitical and economic issues, the Davos Forum offers Azerbaijan an invaluable opportunity to present its rich cultural heritage to the world. Showcasing the country’s national art, music, cuisine, and other traditions helps cultivate a positive image on the international stage.

These cultural initiatives do more than enhance diplomatic ties; they elevate Azerbaijan as a growing cultural and tourist destination. The revival of Azerbaijan’s ancient culture, especially amid the restoration of Karabakh, positions the country as a regional leader with a rich, historical legacy.

Davos 2025 provides Azerbaijan with the opportunity not only to adapt to rapidly shifting global dynamics but also to leverage these conditions to strengthen its role. Leadership in energy, environmental responsibility, successful reintegration of Karabakh, and expanding partnerships with Asia, Africa, and Europe set the foundation for long-term success.

By fully engaging with the forum, Azerbaijan is prepared to present itself as a reliable partner and regional leader. The country is not just solving its challenges; it is demonstrating its capacity to contribute to global stability and prosperity.

Davos 2025 marks a pivotal moment for Azerbaijan to showcase its readiness to step up and demonstrate its capability to guide the world through this time of significant change.

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