Mirror Review
April 22nd, 2025
After an impactful 55 years at the helm, Klaus Schwab resigns from his position as Chairman of the World Economic Forum (WEF), the influential organization he founded in 1971. Stepping down as he enters his 88th year, Schwab’s departure marks a significant transition for the institution known for its annual gatherings in Davos, Switzerland.
The WEF Board has appointed Peter Brabeck-Letmathe, former Nestlé chairman and current WEF Vice Chairman, as the interim Chairman while a search committee seeks a permanent successor. Schwab established the WEF, initially named the European Management Forum, to foster global public-private cooperation and dialogue on the world’s most pressing challenges.
Why Schwab Mattered: The Vision Behind WEF
So, why is this resignation such a significant moment? To understand that, we really need to look at Schwab’s original vision.
When Klaus Schwab, as a German engineer and economist, started what was then called the European Management Forum in 1971, it wasn’t just another business conference.
He had a really specific, and frankly, quite groundbreaking idea. He even laid it out in a book he published that same year. He talked about what we now call “stakeholder capitalism.”
His idea was that a company’s responsibility wasn’t just to its shareholders, but to everyone affected by its actions – employees, customers, society, the environment. This was quite radical for the time.
Schwab believed that solving complex global problems required dialogue and cooperation not just within sectors (like business or government) but between them. That’s the “multistakeholder approach” he championed from day one, aiming to “improve the state of the world”.
Building the Davos Platform
Schwab didn’t just have an idea… he built the platform to make it happen. He turned the WEF, headquartered in Geneva, into the world’s leading stage for this kind of public-private cooperation. The annual meeting in Davos became the place where CEOs, presidents, prime ministers, academics, and civil society leaders could gather.
Think about the sheer convening power he cultivated over 55 years. He created a unique space where leaders from vastly different fields could connect, debate, and sometimes even collaborate on solutions.
The WEF itself points to its role under his leadership as a catalyst for international initiatives and even reconciliation efforts. While critics often labelled Davos as an elitist bubble, its influence on global discourse, fostered by Schwab, is hard to deny.
Klaus Schwab Beyond Davos
Beyond the main Davos event, Schwab consistently pushed new ideas and initiatives through the WEF:
- The Fourth Industrial Revolution: He popularized this concept through his 2016 book, framing the conversation around the impact of new technologies (AI, biotech, etc.) fusing the physical, digital, and biological worlds.
- Nurturing Talent: Now, Schwab didn’t just focus on current leaders. In 1998, he and his wife, Hilde, created the Schwab Foundation for Social Entrepreneurship. Furthermore, in 2004, he went on to create the Forum of Young Global Leaders (for those under 40). Then, the Global Shapers Community (20s-30s) in 2011, deliberately integrating younger voices and future leaders into the WEF ecosystem.
Klaus Schwab’s Enduring Legacy
Klaus Schwab resigns after more than 5 decades. He wasn’t just the head of the World Economic Forum; he was the WEF in many ways. His relentless drive built it from a concept into a major global institution. He put stakeholder responsibility and public-private partnerships onto the global agenda. As the WEF moves forward under new leadership, it inherits the powerful, complex, and sometimes controversial legacy of its founder – a legacy built on the fundamental belief in dialogue across divides.
