Klaus Schwab Resigns: End of an Era for the World Economic Forum 2025

Klaus Schwab, the influential founder of the World Economic Forum, has resigned as chair after decades of shaping global dialogue at the annual Davos summit. This article explores his legacy, the WEF’s impact, and the challenges ahead for the organization.

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Klaus Schwab Steps Down as World Economic Forum Chair: End of an Era in Global Leadership

Introduction:

The global stage has witnessed the departure of a towering figure whose influence has shaped international discourse for over half a century. Klaus Schwab, the German-born visionary who founded the World Economic Forum (WEF) in 1971, has officially stepped down from his position as chair of its trustees.

This announcement, made by the Geneva-based organization on Monday, follows an earlier indication this month that the 87-year-old Schwab would be relinquishing his long-held role as the face of the annual Davos gathering.

Table: Key Figures and Events in the History of Klaus Schwab and the World Economic Forum

Year	Event	Significance
1938	Klaus Schwab born in Ravensburg, Germany.	Shaped by the post-war era and a desire for international cooperation.
1971	Klaus Schwab founds the European Management Forum (later WEF).	Initial aim to introduce American management practices to European businesses.
1973	First European Management Forum meeting held in Davos.	Marks the beginning of the annual Davos gathering as a platform for discussion.
1987	The European Management Forum officially becomes the World Economic Forum.	Reflects the broadening scope and global focus of the organization.
1996	Schwab and Smadja publish an opinion piece warning of a backlash against globalization.	Demonstrates Schwab’s early awareness of the potential negative consequences of globalization.
2007-2009	Global Financial Crisis.	Impacts the global economic order and raises questions about the prevailing models of globalization discussed at the WEF.
2016	Brexit vote in the UK and Donald Trump’s election in the US.	Events seen by some analysts as evidence of the discontent with globalization that Schwab had earlier foreseen.
2022	Russian invasion of Ukraine.	Further exacerbates geopolitical tensions and challenges the spirit of global cooperation often promoted by the WEF.
Last Year	Reports of internal investigations into workplace culture at the WEF.	Raises questions about the internal dynamics and reputation of the organization.
April 2025	Klaus Schwab resigns as Chair of the World Economic Forum.	Marks the end of an era for the organization under its long-standing founder’s leadership, prompting a search for a new chair.

For decades, the name Klaus Schwab has been inextricably linked with the World Economic Forum and its high-profile annual meeting in the Swiss mountain resort of Davos. This gathering evolved into a powerful symbol of globalization, a platform where political leaders, corporate titans, and influential thinkers converged to discuss and shape the global agenda. Schwab’s unwavering dedication and leadership transformed a nascent idea into a globally recognized institution.

In a statement released by the WEF, Schwab confirmed his decision, stating, “Following my recent announcement, and as I enter my 88th year, I have decided to step down from the position of Chair and as a member of the Board of Trustees, with immediate effect. The forum, however, did not elaborate on the specific reasons behind his decision to step down at this juncture.

The WEF board of trustees, in an extraordinary meeting held on April 20th, formally accepted Schwab’s resignation. In the interim, Vice Chairman Peter Brabeck-Letmathe will assume the role of interim chairman as the organization embarks on the crucial task of identifying and appointing a new leader to steer the forum into its next chapter.

The Genesis of the World Economic Forum and the Rise of Davos:

Klaus Schwab’s vision for the World Economic Forum was rooted in a profound understanding of the interconnectedness of the world and the need for collaborative problem-solving. Established initially as the European Management Forum, its initial aim was to introduce American management practices to European businesses. However, Schwab’s ambition soon expanded, recognizing the critical role of political leadership in shaping the economic landscape.

The annual meeting in Davos gradually emerged as the centerpiece of the WEF’s activities. The serene and neutral setting of the Swiss Alps provided a discreet backdrop for candid discussions and relationship-building among global elites. Over the years, the Davos gathering evolved into a significant fixture on the international calendar, attracting heads of state, CEOs of multinational corporations, leading academics, and even celebrities.

Under Schwab’s stewardship, Davos became synonymous with the discourse on major global issues, ranging from economic development and technological innovation to climate change and social progress. The forum served as a platform for launching initiatives, fostering partnerships, and shaping the intellectual framework for addressing the world’s most pressing challenges.

The “Davos Man,” a term often used to describe the globally oriented and interconnected elite who frequented the forum, became a symbol of the era of increasing globalization.

Navigating Criticism and Evolving Global Dynamics:

Despite its significant influence and the convening power it wielded, the World Economic Forum and its annual Davos gathering were not immune to criticism. In recent years, the forum faced increasing scrutiny from both the left and the right, who viewed it as an elitist “talking shop” detached from the concerns and realities of ordinary people.

Critics argued that the concentration of power and influence in the hands of a select few at Davos undermined democratic processes and served the interests of global elites rather than the broader public. The forum was often portrayed as a symbol of the perceived negative consequences of globalization, including rising inequality and a sense of disenfranchisement among certain segments of society.

Beyond external criticism, the WEF also had to contend with internal challenges. Reports surfaced last year in the Wall Street Journal detailing allegations of harassment and discrimination within the organization, prompting the board to reportedly engage a law firm to investigate its workplace culture. The WEF vehemently denied these allegations, but they nonetheless cast a shadow over the organization’s internal dynamics.

Furthermore, the global landscape itself underwent significant shifts that impacted the WEF’s role and relevance. The 2007-2009 global financial crisis exposed vulnerabilities in the prevailing economic order, while the 2022 Russian invasion of Ukraine and the rise of more protectionist trade policies,

particularly in the United States, underscored the growing geopolitical tensions and the retreat from unfettered globalization. Some analysts even began to suggest that the WEF’s influence was waning in this evolving environment.

Schwab’s Foresight and the Backlash Against Globalization:

Interestingly, Klaus Schwab himself demonstrated a keen awareness of the potential backlash against globalization long before it became a dominant political force. In a 1996 opinion piece co-authored with Claude Smadja, Schwab presciently warned of a “mounting backlash against (globalisation’s) effects, especially in the industrial democracies,” predicting a “very disruptive impact on economic activity and social stability in many countries.”

They observed a growing “mood…of helplessness and anxiety” in these democracies, which they identified as a key factor contributing to “the rise of a new brand of populist politicians.” This foresight highlights Schwab’s deep understanding of the complex dynamics and potential pitfalls associated with globalization, even as he championed the WEF as a platform for navigating its challenges.

The Future of the World Economic Forum:

Klaus Schwab’s departure marks a pivotal moment for the World Economic Forum. The organization now faces the significant task of selecting a new leader who can build upon Schwab’s legacy while adapting to the evolving global landscape and addressing the criticisms it has faced.

The interim leadership of Peter Brabeck-Letmathe provides a period of stability as the search for a permanent chair gets underway. The new leader will need to navigate the complexities of a multipolar world, where globalization faces headwinds and geopolitical tensions are on the rise. They will also need to address concerns about the forum’s inclusivity and relevance to a broader range of stakeholders.

The future direction of the WEF will likely involve a careful balancing act: preserving its role as a crucial platform for global dialogue while demonstrating a greater sensitivity to the concerns of ordinary citizens and adapting its approach to the realities of a more fragmented world. The legacy of Klaus Schwab is undeniable, but the next chapter for the World Economic Forum will be defined by its ability to evolve and remain relevant in a rapidly changing global context.

Conclusion:

The resignation of Klaus Schwab as chair of the World Economic Forum marks the end of a remarkable era in global leadership and international cooperation. His vision and tireless efforts transformed a small European forum into a globally influential institution.

While the WEF faces both challenges and opportunities in the years ahead, Schwab’s legacy as a convener of global leaders and a champion of dialogue will undoubtedly continue to shape its future trajectory. The world watches with keen interest as the forum embarks on its search for a new leader to guide it through the complexities of the 21st century.

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