Klaus Schwab Ends Tenure as World Economic Forum Chair

Klaus Schwab is stepping down after leading the World Economic Forum (WEF) for more than 50 years. He started the WEF in 1971. Since then, it has become one of the most powerful platforms where world leaders, CEOs, and thinkers meet every year in Davos, Switzerland.

Many of us have heard about the WEF, but not everyone knows who built it or why it matters. 

Klaus Schwab had big ideas. He talked about fairness in business, the power of technology, and solving world problems together. Some people praised him. Others questioned him. But no one can deny his impact.

Now, things are changing. Schwab has decided to pass the torch. A new chapter is beginning for the WEF, and for the world. 

Let’s find out what Schwab built, what he believed, and what might come next. Let’s take a closer look at the man behind the forum, and where his vision might lead us.

Founding and Evolution of the WEF

In 1971, Klaus Schwab, a German engineer and economist, founded the European Management Forum in Davos, Switzerland. His goal was to bring together European business leaders to discuss management practices and economic strategies. Davos, known for its serene alpine setting, was chosen to encourage open and reflective discussions.​

In 1987, the forum changed its name to the World Economic Forum and started working with leaders from all over the world. It began to include political leaders, academics, and representatives from various sectors worldwide. 

Each year, more people came to the Davos meetings. World leaders, business heads, and experts joined to talk about important global problems.

With Schwab as leader, the WEF became a top place where governments and businesses worked together. They talked about the economy, the environment, and new technology.

Schwab’s Vision and Contributions

Klaus Schwab shared the idea of “stakeholder capitalism.” He said businesses should help not just owners, but also workers, customers, and local communities. He emphasized the importance of long-term value creation and corporate responsibility. ​

Schwab saw how fast technology was growing. He talked about the Fourth Industrial Revolution and how tools like AI and biotech are changing businesses and the way we live. He urged leaders to prepare for these changes through collaboration and ethical considerations.​

In 2020, the WEF launched the Global Consortium for Digital Currency Governance to address the need for a comprehensive framework for digital currencies. 

The goal of this plan was to make digital money fair, easy to use across systems, and well-controlled. It brought together people from different fields and places.

Leadership Transition

In April 2025, Klaus Schwab resigned as Chairman of the WEF. His decision ended over 50 years of leadership. Peter Brabeck-Letmathe, former CEO of Nestlé and Vice Chairman of the WEF, was appointed as the interim chairman. The WEF’s board has initiated a search for a permanent successor to guide the organization into its next chapter. ​

Schwab left as the WEF faces changing global issues and politics. The new leaders will need to handle these challenges while keeping the forum important and influential.

Criticisms and Controversies on WEF

The WEF has faced criticism for being perceived as an elitist gathering disconnected from everyday concerns. Some argue that its initiatives, like the “Great Reset,” lack transparency and may undermine national sovereignty. ​

Reports say there are internal problems at the WEF. These include claims of discrimination and harassment at work. These concerns have raised questions about the organization’s internal culture and commitment to its stated values.

The Future of the WEF Post-Schwab

The WEF stands at a crossroads with Schwab’s departure. The organization must adapt to a rapidly changing world. It addresses challenges like climate change, digital transformation, and economic inequality.​

The new leadership will need to reassess the WEF’s strategies and ensure that it remains a platform for inclusive and effective global dialogue. Focusing on transparency and diversity is key. Clear results will also be important for the forum’s success.

Final Thoughts

Klaus Schwab’s vision transformed the WEF into a significant global institution. As the forum enters a new era, it faces both challenges and opportunities. The WEF drives positive change through adaptation and global collaboration.

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