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Davos 2023 capitalisms polycrisis strikes fear into the ruling class hearts

Marxist Analysis · 2026-05-13

Core Argument

The article argues that the mood of pessimism dominating the 2023 World Economic Forum in Davos reflects a genuine structural crisis of capitalism, not merely a cyclical downturn. The ruling class is gripped by fear because it faces a "polycrisis" — the simultaneous convergence of inflation, recession, geopolitical fragmentation, and rising class struggle — for which it has no solution. The central claim is that the bourgeoisie's own crisis-management measures (quantitative easing, state intervention, protectionism) have exhausted themselves, leaving capital without a strategy to restore stability. The only way out, the article insists, is not reform but revolution.

Theoretical Grounding

The analysis draws on the Marxist theory of the organic crisis of capitalism — the idea that capitalism periodically enters phases where its internal contradictions cannot be resolved within the existing framework, and where each attempted solution merely deepens the underlying problem. This is distinguished from a simple cyclical recession. The article implicitly invokes Marx's analysis of the tendency of the rate of profit to fall and the associated need for periodic devaluation of capital, though it does not deploy the terminology explicitly. It also draws on Lenin's theory of imperialism and inter-imperialist rivalry, particularly in its treatment of protectionism and the fracturing of the world market as a return to "beggar-thy-neighbour" policies. The piece sits firmly within the Trotskyist tradition's emphasis on the permanently crisis-ridden character of late capitalism and the impossibility of a stable, reformed capitalism — a position that distinguishes it from both Keynesian and social-democratic frameworks.

Conjunctural Relevance

The article is situated in the immediate aftermath of the post-pandemic inflationary surge and the Ukraine war's disruption of global energy and food markets. It identifies several specific conjunctural features:

  • Inflation and interest rate hikes: The US Federal Reserve and ECB's aggressive rate rises are pushing economies into recession while failing to quell inflation, producing the worst of both worlds — slump and rising prices simultaneously.
  • China's reopening as a double-edged sword: The abandonment of zero-COVID policy may boost demand for raw materials but also risks fuelling global inflation, while China's own property bubble — described as a "massive bubble" — means it cannot repeat its 2008-style Keynesian stimulus to rescue the world economy.
  • The end of globalisation: The article points to Brexit, Biden's "Made in America" programme, and the general trend toward reshoring and tariffs as evidence that the post-1990s era of integrated global supply chains is breaking down, with protectionism threatening to turn recession into depression.
  • Rising class struggle: The article cites strikes and movements in Sri Lanka, Peru, Iran, China, Britain, and France as evidence that the working class is beginning to move, and that these are "only the beginning."

Where the Argument Continues

The article is a snapshot of the immediate conjuncture and does not develop a detailed strategic perspective for the revolutionary movement. It leaves open:

  • The precise mechanisms of the organic crisis: How the tendency of the rate of profit to fall is expressing itself in specific sectors and regions is asserted rather than demonstrated. This is developed in other IDOM articles on the law of the tendency of the rate of profit to fall and on the specific crises of individual economies.
  • The political form of the coming revolutionary explosions: The article warns of "revolutionary explosions" but does not discuss the role of the party, the united front, or transitional demands. These questions are taken up in the broader corpus of the Revolutionary Communist International's theoretical output, including Against the Stream episodes and articles on strategy and organisation.
  • The relationship between the polycrisis and the climate emergency: The WEF's own report mentions climate action, but the article does not develop this thread. Other IDOM articles on ecological crisis under capitalism fill this gap.

Connections

  • Marx, Capital Volume 3: The theoretical foundation for the analysis of crisis, particularly the tendency of the rate of profit to fall and the role of fictitious capital.
  • Lenin, Imperialism, the Highest Stage of Capitalism: The framework for understanding inter-imperialist rivalry and protectionism.
  • Trotsky, The Death Agony of Capitalism and the Tasks of the Fourth International: The analysis of capitalism's inability to resolve its own contradictions and the necessity of revolutionary leadership.
  • IDOM articles on the 2008 crash and its aftermath: The article explicitly contrasts the current conjuncture with the post-2008 period, when Keynesian stimulus temporarily stabilised the system. Reading those earlier analyses clarifies the argument about the exhaustion of that strategy.
  • IDOM articles on the law of the tendency of the rate of profit to fall: For a more detailed theoretical exposition of the mechanism underlying the organic crisis.

Key Quotes

  1. "The word 'polycrisis' provides a fair summary of the discussions at #WEF23 – used by multiple speakers over the five days to describe the concatenation of dangers and threats that the global economy currently faces."

  2. "With inflationary pressures – such as the Ukraine war and the breakdown in world trade – continuing, she stated, we are likely to end up with the worst of both worlds: economic slump alongside rising prices."

  3. "Underlying the covid-chaos is the organic crisis of capitalism, which is expressing itself in China most notably in terms of the massive bubble in the property market."

  4. "Once again, we see a stark demonstration of how the nation state – alongside private property – stands as a fundamental barrier in the way of the development of the productive forces, as protectionism threatens to turn the looming world recession into an even-more ominous depression."

  5. "The strategists of capital can sense the precariousness of their system. At the same time, they have no solutions; no alternative but to impose austerity and attacks – demanding that workers pay for this crisis."

  6. "This is provoking and preparing revolutionary explosions in all countries. The billionaires, bosses, and bankers in Davos therefore have every reason to be terrified."