O n January 27, Russian President Vladimir Putin participated in the annual Davos Economic Forum online. This is the first after an 11-year break that Russia participates in the conference at a presidential level. In his speech, Putin spoke about the global changes, the threats facing humanity and about the ways to overcome them.

According to the Russian President, it is difficult not to take notice of the fundamental transformations in the global economy, politics, social life and technology. The Covid-19 pandemic has only spurred and accelerated structural changes, the preconditions for which were already formed quite a long time ago. According to Putin, there is every reason to believe that there are risks of even further contradictions in this realm. The President infers to the comparison given by experts who compare the current situation with the 30s of the 20^th century.

Putin believes that currently there is a crisis of previous models and instruments of economic development, strengthening of social stratification both globally and in individual countries. This, in turn, causes a sharp polarization of public views, promotes the growth of populism, right and left radicalism, other extremes, aggravation of internal political processes, including in leading countries.

With this comes the weakening of international institutions with regional conflicts increasing and the global security system degrading.  On January 26, Russian President had a telephone conversation with the U.S. president, and considered the extension of the Treaty on Strategic Offensive Arms as a right step. Putin, however, hopes that currently such a global “hot” conflict is basically impossible, as it will mean the end of civilization.

He also expresses concern that any situation can develop unpredictably and uncontrollably. International relations may turn into a “struggle of all against all”. The social and value crisis is already turning into a negative demographic consequence, due to which mankind is at risk of losing its entire civilizational. The common issue of humanity today is to avoid such a calamity, which looks like a dark dystopia. We need to ensure development along a different, positive, harmonious and creative trajectory. In this regard, it is necessary to raise the challenges facing humanity and to find ways to overcome them.

President Putin points to three such interrelated challenges, those are socio-economic, socio-political and international. Despite the impressive growth of the world economy and the remarkable achievements in overcoming poverty in many countries in recent decades, the issue of equitable income distribution hasn’t been resolved. The benefits of economic growth are concentrated in the hands of a small group of people. As a result, social polarization deepens and the contradictions between various social layers intensify.

The deepening of socio-economic issues leads to socio-political crisis in various countries. Ethnic, religious and other conflicts are escalating, which in turn leads to a crisis in international relations, where the probability of wars and the use of force increases. Overcoming these challenges requires the efforts of all for the benefit of all humanity. The times of “golden billion” and unified world order have gone. In line with maintaining healthy competition, the cooperation of all states is required, with a priority given to solving the following issues in each country: a) comfortable living environment, b) opportunity for decent work and promotion, c) affordable education and healthcare.

From this point, the takeaway is creating the well-being of people with prioritizing overcoming conflicts, resolving environmental issues, effectively fighting infectious diseases (for instance the coronavirus) and international legal regulation of the activities of large Internet companies, which have a significant impact on digital space, particularly on politics.

Russian political analysts responded to President Putin’s speech. It is generally an appeal to the international community and Western countries to reset economic and political relations in order to end the existing system, as well as to jointly regulate digital giants that are trying to influence world events. According to general director of the political information center Alexei Mukhin, the president’s speech can be considered a message for Western countries that behave “aggressively and unpredictably" in geopolitics and economy.

"Vladimir Putin appealed to people who make responsible decisions in various countries, (urging) to attend to the creation of a new updated system that would reset the global system of economic and political relations .... of this former old world economic system, the very authors who are now responsible for what is happening will be buried”, Mukhin notes. According to him, Putin has warned the international community about the need to be careful with large IT companies. Transnational digital giants can greatly deform the national state model by manipulating public opinion.

Political expert, Alexei Zudin, a senior lecturer at Moscow State Institute of International Relations also noted that the Davos Conference’s platform has a diverse audience, including politicians and businessmen. Therefore, Putin’s speech will be available to all. Political experts also commented on the president’s speech from the perspective of sanctions. Putin reiterated that Russia is not the initiator of aggressive sanctions to other states thus, if the sanctions are tightened, Russian response will follow.

According to Zudin, the President stressed the huge political influence of IT companies and the need for international regulation of their activities. The activity of such companies needs regulation. Since they are giant companies, the regulation must be international in order to be effective. Large companies try to bypass the law in Russia as well, they violate citizen’s rights and strive to be equal to the state. The state in turn counters it. Therefore, this is an issue for all. Even a new term- digital sovereignty appeared.