Loop,ꟷan initiative that links major consumer product brands, retailers and Terracycle,ꟷis generating a lot of excitement since its announcement in January at the Davos World Economic Forum. Loop, which will actually launch in May, is a shopping concept that will deliver common household food products in packaging that is made to be used multiple times. The system will be tested in Paris and New York as a first step, with London, Toronto and Tokyo expected to be added later in 2019.

New Loop circular platform promotes reusable consumer product packaging

 

The Loop system, created by New Jersey-based Terracycle, could change the way people consume goods.

By Kevin J. RyanStaff writer, Inc.@wheresKR

CREDIT: Terracycle

 

If you’ve ever heard your older family members reminisce about days of old when milkmen used to deliver milk in reusable glass bottles every morning, imagining such a thing might seem kind of quaint and old timey. But those old-school milk deliveries were onto something when it comes to minimizing waste. In an effort to revive and update the grocery home delivery model, Loop, a new zero-waste consumer goods delivery platform, is launching this spring in the United States and France. This basically means that, come spring, you can get your groceries delivered in reusable packaging, and nothing gets thrown out. According to Adele Peters writing for Fast Company, once you’ve cleared out all your (super cute) stainless steel containers, you send them back to Loop, where they get cleaned, sterilized, and reused for other customers. According to the brand’s official website, Loop is partnering with a slew of top brands to make “your everyday essentials … available in durable, functional packaging that’s beautiful enough to display.” Instead of getting one box delivered every month, as is typical with delivery subscriptions, Loop will automatically resend items as you return your containers, so your supplies get replenished as you need them. It was not immediately apparent how the prices for these products will be different than buying them conventionally. Courtesy of Loop Given that plastics are filling up our oceans and destroying marine life while adding to massive levels of pollution worldwide, according to Danielle Wiener-Bronner writing for CNN, zero-waste consumer solutions come not a moment too soon. Tom Szaky, CEO and co-founder of Loop partner, TerraCycle, told Peters for Fast Company that “We run what is today the world’s largest supply chain on ocean plastic, collecting it and going into Unilever and Procter & Gamble products and so on. But every day, more and more gets put in the ocean, so no matter how much we clean the ocean, we’re never going to solve the problem. That’s really where Loop emerged: To us, the root cause of waste is not plastic, per se, it’s using things once, and that’s really what Loop tries to change as much as possible.” Courtesy of Loop Each reusable Loop package is designed to last for at least 100 uses, Peters wrote, and product orders can be placed via the Loop website once the platform is launched. Your products will get delivered in a UPS-designed reusable tote, and as you use your stuff up, just toss the canisters back into the tote. You’ll then be able to either drop off your Loop bag at your nearest UPS, or schedule a pick-up from the Loop site. If you’d like to queue up to get on the waitlist for the upcoming rollout, you can sign up on the website’s home page.   About 300 products are slated for launch via the Loop platform, Wiener-Bronner wrote for CNN, including Tide brand laundry detergent, Crest oral health supplies, Häagen-Dazs ice cream, Pantene shampoo, and Nature’s Path Organic items. Peters also wrote that eight out of 10 of the major brands listed by Greenpeace as being primary contributors to the global plastics crisis are on board as part of the new platform.   Given the overwhelming scale of the global plastics crisis, eco-friendly solutions that revamp the way companies do packaging, is long overdue as a mainstream concern.

Recycling is incredibly important, but it’s not without its caveats. For one, plastics lose their quality each time we recycle them, so it’s not an effective long-term solution for our plastics. Plus, it’s not always economically viable for recycling centers to actually process all our plastic waste—not to mention that it’s nearly impossible to get the majority of the global population recycling at all (never mind recycle properly). So while it’s crucial that we continue to recycle, we also need to make some real changes to the way we consume products. We need to stop our endless consumption of single use plastics. With the amount of plastic matter polluting our oceans and water supplies on a daily basis, using plastic once and then throwing it out is just not sustainable. But a massive change may be on the horizon.  Loop—a new zero-waste platform spearheaded by TerraCycle (a waste company that works to recycle especially challenging materials). A coalition of major brands—like Procter & Gamble, Nestle, PepsiCo, and Unilever—designed Loop to be convenient, affordable and unobtrusive for consumers. That’s right—we’re not talking about artisanal ice creams and high-end nut butters in reusable packaging. Loop will make many of America’s most popular products zero-waste—like Tide detergent, Häagen Dazs ice cream, Seventh Generation cleaning products, Pantene shampoo, Dove deodorant and Crest mouthwash. And they’ll deliver them to your door and pick up the empty container up when you’re done, like a modern milkman. HOW LOOP WILL WORK When you order your deodorant or detergent or whatever, you’ll pay a small deposit for the bottle. Then, the company will deliver the product in a super-durable, reusable tote, designed by engineers at UPS to withstand many abusive uses. When you finish your products, you can throw them back into the tote. When the tote is full, you simply request a delivery person to pick it up from the Loop website or drop it off at a UPS location. Everything in the system is designed to withstand at least 100 uses, which is a major step up from the use-and-toss system we have in place right now. Even if you don’t like the big brands that are partnered with the service, you have to admit that making zero waste a part of the average consumer’s shopping experience would be a major environmental win. Loop is launching its pilot programs this year. As early as this spring, consumers will be able to take part in this new sustainability initiative in both New York City and Paris. After that, who knows. If Loop is a success, maybe you’ll be able to buy your favorite ice cream flavors in a stainless steel container, too.

To solve the ever-growing problem of too much waste and plastic, a coalition of major consumer product manufacturers is borrowing an old-fashioned idea.

Most Care2 readers probably won’t remember the days when the milkman came to call each morning. He used to bring milk and cream in glass bottles, which customers used and then put outside for him to retrieve. Today, that idea is getting a fresh coat of paint. Thanks to a new marketing platform called Loop, the producers of many of the items you buy will market their goods in reusable, returnable stainless steel containers. That’s called zero-waste packaging, my friends, and its time has come. “While recycling is critically important, it is not going to solve waste at the root cause,” Tom Szaky, CEO and cofounder of TerraCycle, one of the partners behind Loop, told Fast Company. “To us, the root cause of waste is not plastic, per se, it’s using things once, and that’s really what Loop tries to change as much as possible.” There’s a lot of truth in that statement. We buy so much stuff these days because it’s convenient and single-serve. Yes, it’s plastic — but it’s not plastic’s fault. Our love affair with convenience has landed us in the mess the world now faces. Here’s how the Loop platform will work:

• Customers purchase products — anything from Dove deodorant to Haagen-Dazs ice cream — from Loop’s website
• The purchase includes a deposit for the container
• UPS, a Loop partner, will deliver the products to the customer’s home in a re-usable, compartmented tote
• As the products are used up, customers place the empty containers back into the tote
• When the tote becomes full, customers request a pickup via Loop’s website or drop off the tote at a UPS Store

Loop automatically replenishes the products a customer sends back, so the things you use all the time will come to you as you finish them. Loop calls it “the first subscription model that manages itself.” Each package is designed to be used at least 100 times. Use of that tote to move the products back and forth means there are no cardboard shipping boxes to get rid of — sorry, Amazon. Just consider the volume of garbage that will drop out of the waste stream if this model of packaging becomes the standard for the future. The array of brands participating in the Loop pilot program in New York City and Paris is remarkable. Here are only a few:

• Crest
• Seventh Generation
• Tide
• Clorox
• Pantene
• Nature’s Path Organic
• Hidden Valley
• Febreze

Procter & Gamble, Unilever, Nestlé, PepsiCo, Danone, Mars Petcare, Mondelēz International and others will provide their products in reusable containers for Loop’s pilot program. Assuming all goes well, we can expect to see Loop roll this idea out to a broader geographic area. With a little luck, maybe zero-waste packaging will be the future of commerce. Sometimes old ideas are the best ideas, after all. Like the old song says — everything old is new again.

Plastic in and of itself isn’t to blame for the world’s waste problem. Rather, it's the way we use it. Companies send products and packaging into the world that are designed to be disposable — used just once, then thrown away — and consumers demand the convenience, accessibility and price points of single-use plastic items. Everyday examples include consumer product packaging or consumables, such as food and beverage and household goods, and disposable and single-use products, such as cleaning pads, coffee capsules and eating utensils. E-commerce is made possible with plastic, and manufacturing logistics and operations have come to depend on it. Inexpensively made, disposable plastic offers consumers the ability to purchase, use and toss, instead of repair or reuse, and at a lower cost than their durable counterparts. As a result, people own more things than ever before and easily can replace them, allowing consumers to buy again and again and again.

One (use) and done

Disposability is favored over durability in the global economy because it drives consumption. Many disposable items are lightweighted (made with less material or out of plastic instead of metal or glass), supporting mass production and increasing profits for manufacturers. The trade-off is that most examples of lightweighted and disposable items are considered unrecyclable in most consumer programs. Every step away from durable, reusable materials towards plastics and multi-compositional pouches and films effectively has cut recyclability in half. Producer efforts to instate reclamation systems and collection schemes to supplement and invest in recycling have not been developed at a comparable rate.  

Disposability is favored over durability in the global economy because it drives consumption.

Even the ubiquitous water bottle, thrown away in the United States at a rate of 60 million plastic water bottles every day,  often ends up in the garbage despite being considered recyclable.   Thus, single-use items are at best captured by well-managed disposal systems of landfilling and incineration. The rest of it ends up as litter, polluting communities where people live and contaminating the natural world. This systematic tracking of human-made material — material that cannot be absorbed by nature — on a one-way path to disposal is where plastic becomes problematic.

Who pays the cost for disposable plastics?

The linear, take-make-dispose economic model has delivered profits, created jobs and met consumers’ desire for accessible, innovative and convenient products. But it is not sustainable. Developing economies with a lack of waste management are most deeply awash in trash. That we might see more plastic than fish in the ocean by 2050 is old news in light of the recent United Nations report that says we only have 12 years to steer ourselves away from climate catastrophe. It is today’s consumers, not producers of these disposable items, who bear the brunt of this waste. Making their way into marine environments, plastics never fully degrade, leaching chemicals, releasing greenhouse gases and breaking down into microplastics, which are mistaken by animals for food and thus penetrate the human food chain and water supplies.

Material of value

But again, plastic isn’t the bogeyman. While its single-use, disposable configurations lend value to businesses externalizing the environmental, social and financial costs, it has infused immense value to industry as a whole — an enabler for the packaging, construction, transportation, health care and electronics sectors. The idea that plastic, or any material for that matter, is disposable is what is causing problems. Plastic was once considered an expensive material and used to produce high-value items. Prior to World War II, products were repaired and consumables refilled in durable containers through service models such as the milkman. By the time the war ended, a matured plastics industry was freed up to create a culture of consumerism and feed a new disposable economy.  

Plastic can be made for reuse and can exist in a circular economy, as can glass, treated paper, lab-grown leather and 3D-printed produce.

Waste and disposability has been around only a bit more than 70 years. Is the world ready to go back to reusable packaging? Consumers are used to the convenience and cost of disposable, single-use packages.   Bulk and refilling stations that use reusable plastic, stainless steel and glass containers either provided by the retailer or the consumer do exist today, and they work best when consumers are incentivized to use them with discounts and promotions. But business must be on board for such systems to work. Bottle bills and container deposit schemes provide evidence that reusable, returnable packaging configurations work to change the perception that resources are disposable. Today the 10 U.S. states with bottle bills boast a 70 percent average recycling rate, compared with an overall rate of 35 percent. The challenge is that bottle bills not only are not growing but declining due to pressure from industry.

The role of business: moving the needle

Moving away from disposability and towards durability is the key to reducing waste and designing a more sustainable economy. Industry holds this key. It is the role of business to be a reflection of the needs and desires of consumers, who want access to the quality products and services they trust and, while they are at it, want to do the right thing. Companies that understand this and are able to make it easy for consumers tap into an increasingly conscious consumer base and are poised to grow and profit by doing the opposite of their counterparts stuck in the linear economy. This shift is already taking place. The biggest consumer product companies in the world have taken the initiative to lead us into a circular economy by working with TerraCycle to develop the global, first-of-its-kind shopping system called Loop. Through this service, consumers can shop for iconic and trusted brands such as Procter & Gamble, Unilever, PepsiCo, the Clorox Company, The Body Shop, Preserve and more — redesigned to be smarter and waste-free. This model features durable, elegant packages owned by the brand, not the consumer, that deliver the world’s favorite products without sacrificing the convenience and affordability that make disposable products desirable, with the added value of delivery and refilling services. The aim is to make products even easier to buy and use, harkening back to the circular systems worked for us for millennia. Through Loop, consumers responsibly can consume products in specially designed durable, reusable or fully recyclable packaging made from materials such as alloys, glass and engineered plastics — plastics researched and developed to be life-resistant, beautiful and far from disposable — saving energy, resources and diverting pollution with every use. Changing perspectives around the value of our finite resources and the impact waste has on the planet can start with plastic. Plastic is valuable and worth capturing for recycling. It is useful and malleable enough to design for durability and certainly worth conserving. Plastic can be made for reuse and can exist in a circular economy, as can glass, treated paper, lab-grown leather and 3D-printed produce. Everything on this planet has value, even the human-made stuff. Consumers vote with their wallets every day for the future they want, and it’s up to companies and brands to spearhead the change they can buy into.

An estimated 3,000 government officials, business leaders, economics experts and non-profit representatives flocked to Davos, Switzerland, for the 2019 edition of the World Economic Forum’s annual gathering. To create a new world, we need a new world order. And that order should be guided by a vision for shared prosperity and shaped, at least in part, by a circular economic model. That mantra was espoused by many of the estimated 3,000 government officials, business leaders, economics experts and non-profit representatives who flocked to Davos, Switzerland, last week for the World Economic Forum’s annual gathering. Amid the kerfuffle about the comings and goings of an estimated 1,500 private jets, consternation over the U.S. no-show and muted cheers over record numbers of female delegates, calls for circularity — including the bold push for reusing consumer products packaging fronted by TerraCycle — and inclusivity sounded again and again. "This next phase of globalization needs to deliver economic growth — but deliver it such that it is equitable growth," said Microsoft CEO Satya Nadella, one of the conference co-chairs, in prepared remarks for his speech at the event. "Let’s challenge the status quo with innovation and ingenuity." That requires an intergenerational, international perspective: This year, six of the eight meeting agenda co-chairs were millennials representing Colombia, Iraq, Japan, Kenya, Sweden and the United States. Noura Berrouba, member of the Governing Body of the European Youth Parliament, challenged participants to find empathy. "These are not threats; these are not problems," she said, referring to the distance between the Davos attendees and those whose voices need louder amplification. "These are change agents and opportunities, and if we want to create a world where we tackle our common challenges, we need to work with the people outside of these halls." The tone of these remarks was echoed later in keynote addresses by the prime ministers of Spainand Italy, as well as the United Nations Secretary-General António Guterres, who spoke extensively about the need to address the growing wealth gap in Europe and the rest of the world. The "yellow vests" movement in France, for example, has been a wake-up call to other members of the European Union. Governments’ climate change strategies have focused on renewable energy, energy efficiency and avoiding deforestation but they have overlooked the vast potential of the circular economy. "I am a multilateralist; I am deeply convinced there is no other way to deal with global problems but with global responses," Guterres said. "It is also not enough to vilify those that disagree and call them 'nationalists' or 'populists.' We need to understand the root causes of why large sectors of the population in different parts of the world today disagree with us — and we need to address those root causes and show these people that we care for them." Just one more exacerbating factor: New data from Oxfam suggests that Earth’s 26 richest individuals own as much as the poorest 50 percent. In 2017, it took 43 billionaires to get to that number. In an essay penned for the World Economic Forum (WEF) media center, the chief sustainability officer for Indian equipment and vehicle conglomerate Mahindra, Anirban Ghosh, suggested that the ingredients to build compelling circular economy businesses and models in poor or developing nations — including India and China — are plentiful and potent. He noted that addressing climate change offers an unparalleled opportunity to "reboot" the world economy, pointing to materials recovery and higher rates of repair as steps in the right direction. "Often handled informally, these activities provide the only source of livelihoods to some of the world’s poorest populations," wrote Ghosh. "By turning these existing trends into core development strategies, these countries could generate significant economic savings and massively cut down on carbon emissions. While developing countries must learn to do more and do it better, developed economies have an opportunity to re-orient the ‘take-make-dispose’ economic model towards a more circular paradigm." A sense of urgency Much has changed globally in the 12 months since the last Davos gathering, most especially the publication last fall of a report by the Intergovernmental Panel on Climate Change signaling that humans are acting far too slowly to meet the climate-mitigation goals of the Paris Agreement. Everyone needs to get a move on, to stay within just 1.5 degrees Celsius warming of global temperatures by 2030, the panel urged. "Unprecedented changes in all aspects of society" are required to get there — touching land use, energy, buildings, transport and cities — costing an estimated $2.4 trillion a year worldwide, it warned in October. We’re already witnessing the fallout in the form of more frequent hurricanes, droughts and wildfires around the world. As is tradition, the forum released its annual report (PDF) about global risks shortly before the gathering: the top three dangers, in terms of likelihood, are all related to global warming — extreme weather events, failure of mitigation and adaptation and natural disasters. That’s almost the same as last year’s list, with the exception of the weight the forum placed in 2018 on cyber attacks and data privacy concerns. "Renewing and improving the architecture of our national and international political and economic systems is this generation’s defining task," wrote World Economic Forum's president, Børge Brende, in the risk report introduction. "It will be a monumental undertaking, but an indispensable one." The upside potential of circular economy strategies It also could be lucrative for the businesses that step ahead, according to several economic analyses and reports published this week alongside the forum. Research from Dutch-based Circle Economy estimates that just 9 percent of the global economy operates in a circular manner. Only by prioritizing broader reuse of the roughly 92.8 billion metric tons of minerals, fossil fuels, metals, biomass and other materials that enter the economy annually can countries meet the United Nations target of limiting global warming to 1.5 degrees C, the organization suggests. "Governments’ climate change strategies have focused on renewable energy, energy efficiency and avoiding deforestation but they have overlooked the vast potential of the circular economy," said Circle Economy CEO Harald Friedl in a statement. "They should re-engineer supply chains all the way back to the wells, fields, mines and quarries where our resources originate so that we consume fewer raw materials. This will not only reduce emissions but also boost growth by making economies more efficient." Certain industries could have a massive impact. A separate report (PDF) published by WEF and the United Nations E-Waste Coalition estimated the annual value of electronic waste at $62 billion, three times the worth of all the silver produced in a single year. Put another way, the current "volume" of e-waste produced annually, almost 50 million tonnes, weighs more than every commercial airplane created. The data heralds a new collaboration between several U.N. agencies and technology giants Dell, HP Inc., Microsoft and Philips, which are investing $15 million to begin constructing an e-waste recycling industry in Nigeria. The Ellen MacArthur Foundation also weighed in with an updated report about the connection between food waste and circular economy principles, which the organization estimates could be worth $2.7 trillion annually to the global economy. The paper is essentially a call to action for city planners, given that urban areas will consume roughly 80 percent of all food produced by 2050. Three practices that will be particularly imperative: local sourcing that prioritizes agribusinesses using generative soil techniques; more creative ways of making use of food by-products to eliminate waste; and more weight on plant-based protein alternatives. Here are some ways that technology can help One company that has factored the implications of circular economy principles for some time is Google. One of its quests has been researching and imaging ways in which it can help cities rethink energy management, transportation systems and waste diversion, recycling and reuse systems. Naturally, Google believes technology will be central to accelerating and enabling the transition. This week, the company’s cloud software organization kicked off a social entrepreneurship contest in collaboration with SAP called Circular Economy 2030 to surface "original ideas" for transforming anything from agriculture to packaging. Google also believes artificial intelligence has a big role to play in accelerating and scaling the circular economy transition, a position it defends in a white paper released in collaboration with the Ellen MacArthur Foundation. Two of the bold claims: Design choices enabled by AI could help eliminate up to $127 billion in spending per year related to food waste and up to $90 billion in electronics production — both predictions are pegged to 2030. AI could be particularly useful in overhauling the product design process, according to the paper. Here’s why: Circularity requires more features to be taken into consideration for the design of products, components, and materials, such as disassembly, upgradability, or recycled content. Add to this list of features the wide choice of materials and the possibilities of manipulation of structures with 3D printing and other manufacturing techniques, and the design options become countless. AI technology can be a helpful tool to enable designers to manage this complexity when making decisions. A continuous feedback process where designers test and refine AI generated design suggestions could lead to a better design outcome in a shorter time period. For a hint of other technologies that could play a role in the transition, peek at information about Accenture’s latest The Circulars awards, meant to recognize trailblazers. This year’s program attracted more than 450 applications. The winners included Lehigh Technologies, which helps reincarnate end-of-life tires for new uses; TriCiclos, a company that has reinvented the waste management infrastructure in Brazil, Chile, Colombia and Peru; and Winnow, which makes a "smart meter" used by companies such as IKEA and Hilton to reduce food waste in commercial kitchens. An infinite loop for consumer products, inspired by reusability Davos was also the launch pad for a new initiative, Loop, convened by consumer products giants such as Procter & Gamble, Unilever, Danone and Mondelēz to test a system of reusable packaging imagined by upcycling pioneer TerraCycle. In the first phase, available this spring near Paris and in the New York metropolitan area, about 300 products will be made available in reusable, durable containers. Once an item is consumed, the empty container can be returned for a refill. "We realized that recycling and using recycled content is about trying to do the best you can with waste, but it's not solving the foundational reason we have waste," TerraCycle founder and CEO Tom Szaky told GreenBiz. "We did a lot of reflection on that and realized that the foundational cause of garbage is disposability and single-use. We tried to come up with a way to solve for disposability but maintain the virtues of disposability, which are convenience and affordability." Whether consumers embrace the idea remains to be seen, of course, but the need for more business models build on the concept of reuse never has been more urgent.

Tim Cook, Matt Damon, economic worries and social unrest The week of the annual meeting of the World Economic Forum is a fire hose of news. Headlines, predictions, sightings and tidbits that months and years later are recognized as the flash point for much larger shifts and trends can often get overlooked. To help you sort through it all, we’ve put together this crib sheet of everything that we think was important that happened here in Davos. (Yes, I’m writing this from Davos on my way home.) Before we get into the substance, a couple of observations. The World Economic Forum has traditionally brought together the world’s top political and business leaders. But this year, the political leaders were largely absent — remaining in their home countries to handle crises largely of their own making (President Trump with the shutdown and Prime Minister Theresa May with Brexit). The surprise guest this year was Tim Cook, Apple’s chief executive, making his first appearance; it may be an indication of Apple’s increasing dependence on foreign markets for growth.

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The topic du jour (besides the shutdown) was a debate over where the global economy was headed. Chief executives professed confidence that their earnings would continue apace, while economists and investors talked about the prospect of a recession in 2020. And others, like Ray Dalio — and Seth Klarman, who did not attend, but whose annual letter was a constant talking point — worried about social unrest. Interestingly, Dr. Doom — Nouriel Roubini — was actually upbeat. A Chinese chief executive described his country’s economy as “ugly” — he used that world repeatedly — suggesting that the underlying foundation there was more fragile than most economists acknowledge. That could lead to weakness in China spreading to the rest of the world. And the general sense is that while the U.S. and China may reach a trade détente, we might be headed for a decades-long economic cold war. Larry Fink’s letter and the concept of E.S.G., shorthand for “environmental, social and governance,” got a lot of discussion this year — it felt like it might be a tipping point in the dialogue. European companies are still more interested in E.S.G. than U.S. companies, but it feels like a trend that isn’t going away. TPG’s Rise Fund started a new company, Y Analytics, to measure E.S.G. Bono, a board member of Rise, was on hand to talk about impact investing and to support his Red brand, which he started a decade ago in Davos (DealBook broke that story at the time) as well as his One franchise. Matt Damon was in town to raise money for his water.org, which is turning into a quite successful story (side note: Mr. Damon had to borrow a suit because his bag got lost by Swiss Air). Jane Goodall was also in Davos — and let me say that she is as nice as she is important. Even the Vatican sent a delegation to talk about conscious and inclusive capitalism. And Rebecca Blumenstein, the deputy managing editor of The New York Times, interviewed Bill Gates on Twitter about his work around the globe. ____________________________ Today’s DealBook Briefing was written by Andrew Ross Sorkin in Davos, Switzerland; Stephen Grocer in New York; and Tiffany Hsu and Gregory Schmidt in Paris. The U.S. versus China: It’s not a trade war, it’s a tech war The soap opera of tariff negotiations has riveted economists and executives: Will Beijing keep its promises? Will Washington cooperate? But the real drama is not about trade, but about technology, many in Davos have said. The brewing conflict could affect generations and disrupt the world order, according to Fred Kempe, the chief executive of the think tank Atlantic Council. He wrote: The growing danger is that the tech race could become the primary battleground in a struggle between democracy and autocracy — and between China and the U.S. The dangers of a technological Cold War, a zero-sum contest for global dominance that ultimately separates Chinese and U.S. tech sectors from each other and divides up the world, are increasing. What’s the worry? The billionaire George Soros said that artificial intelligence, when in the hands of authoritarian regimes, was a “mortal threat” to the world. He cited China, which is developing a social credit system that would use personal data to judge an individual’s trustworthiness, as an example. President Xi Jinping could eventually have “total control over the people,” making him “the most dangerous opponent of open societies,” Mr. Soros said. What do the Chinese think? The technology industry relies heavily on global interactions and is “probably suffering the most right now,” said Ken Hu, the deputy chairman of Huawei. The Chinese telecommunications company has been accused by multiple nations, including the U.S., of violating trade rules. Other players, such as the Chinese state-owned oil and gas company Sinopec, say they expect Chinese companies to scale back foreign investment — steps already taken by Alibaba and by GAC Motor. Last year, nearly 60 percent of Chinese C.E.O.s considered the U.S. to be the most important foreign market; this year, only 17 percent feel the same, according to one survey published this past week. Hope for resolution? Secretary of State Mike Pompeo said via video link that Washington was willing to play nice with Beijing if China pledged to protect intellectual property. At a dinner in Davos, a top Chinese regulator heard complaints from international business leaders about the ownership structure of state-owned enterprises and about the Made in China 2025 effort, which aims to take the lead in industries such as artificial intelligence and robotics. But China wants its space. Vice President Wang Qishan said in a speech that “it is imperative to respect national sovereignty and refrain from seeking technological hegemony.” He added: We need to respect the independent choices of model of technology management and of public policies made by countries, and their right to participating in the global technological governance system as equals. More forecasts for a global economic slowdown A recession may not be coming this year, but neither is a boom, Greg Ip of the WSJ writes. The International Monetary Fund downgraded its 2019 forecast for global growth to 3.5 percent. That’s a respectable number, he writes, but the world is struggling to sustain even that muted pace. The reason: The world cannot tolerate interest rates as high as it once did. The “neutral” interest rate — one that is high enough to contain inflation, yet low enough to avoid recession — is much lower than before. The underlying cause: As aging workers retire and birthrates drop, the labor force has grown more slowly. Productivity has also eked out smaller gains than in the past. The upshot: Central banks need to proceed carefully, because a little fiscal tightening goes a long way. More on the global economy: Ray Dalio, founder and chairman of the hedge fund Bridgewater, said he foresaw slower growth rates in the U.S. and Europe. France is sticking to a 1.7 percent economic growth forecast for 2019, the French finance minister, Bruno Le Maire, said. Christine Lagarde, the managing director of the I.M.F., warned against an overreliance on central banks, urging countries to strengthen their economies through fiscal and structural changes. In the absence of world leaders, the atmosphere was downbeat. Representative Alexandria Ocasio-Cortez.CreditAndrew Harnik/Associated Press   Image Representative Alexandria Ocasio-Cortez.CreditAndrew Harnik/Associated Press Tax the rich Alexandria Ocasio-Cortez wasn’t in Davos this week. It just felt like she was. The New York representative’s proposal to impose a 70 percent tax rate on income above $10 million came up frequently among the uber-wealthy in attendance. In those elite circles, filled with people whose fortunes have soared in recent years, the idea was not popular. Michael Dell, the billionaire founder of Dell Technologies, is not a fan, for one. Scott Minerd, the chief investment officer of Guggenheim Partners, said the concept was “scary.” Glenn Hutchins, the chairman of North Island and a co-founder of Silver Lake Partners, suggested that it was an attempt to “score political points” and that it would probably be unsuccessful. Ken Moelis, the chief executive of the investment bank Moelis & Company, said it would be “disastrous for the economy.” Stephen Schwarzman, the billionaire chief executive of Blackstone, said he was “wildly enthusiastic” about Ms. Ocasio-Cortez’s pitch. (He was being sarcastic.) But as the economy slows and 2020 election talk surges, taxing the rich is a topic that will most likely continue to surface. Senator Elizabeth Warren of Massachusetts, a Democratic candidate for president, proposed a so-called ultramillionaire tax this week on the 75,000 wealthiest families in the country, including President Trump’s. Still, top earners would probably figure out how to sidestep such rules, Mr. Minerd said. The political pendulum is swinging. The conservatives found out they’re being held hostage by the extreme right. Now the Democrats are going to find out they’re being held hostage by the extreme left. Defending the international order Globalization had some powerful defenders in Davos, with world leaders imploring delegates not to abandon postwar principles of international integration. Several took jabs at the absent President Trump without mentioning him by name, criticizing his “America First” foreign policy and his habit of provoking trade disputes. The vice president of China, Wang Qishan, whose own country has been accused of running roughshod over foreign competitors and global business rules, nonetheless condemned “practices of the strong bullying the weak and self-claimed supremacy.” Carrie Lam, the chief executive of Hong Kong, said that certain countries were drifting from the multilateral framework of the past few decades. “If that is no longer the mainstream, we could be in trouble,” she said. Chancellor Angela Merkel of Germany, who leads a country that is deeply reliant on international trade and increasingly surrounded by neighbors confronted by protectionist tendencies, urged Western powers to “act against the fragmentation of the international architecture.” She said that global organizations such as the International Monetary Fund and the World Bank should be reformed and that countries should embrace compromise. She added: I think we should understand our national interest in a way that we think about the interests of others, and from that create win-win situations that are the precondition for multilateralism. Shinzo Abe, the prime minister of Japan, pledged his country’s support for “the free, open, and rules-based international order.” He called on forum participants to “rebuild trust toward the system for international trade.” A call for greater oversight of Big Tech World leaders called for more regulation. Prime Minister Shinzo Abe of Japan said his country would push for a new international system for the oversight of data use. His proposal was echoed by others: • The South African president, Cyril Ramaphosa, said African Union leaders would discuss greater oversight of the tech sector at a meeting early next month. • Chancellor Angela Merkel of Germany cited a need for the European Union to have a “common digital market.” • Vice President Wang Qishan of China also said that more international cooperation in regulating the market was required. Talk focused on global governance, data privacy and the impact of artificial intelligence, but there was no consensus on what approach to take. Some official sessions tried to put a positive spin on the effects of technological advances, but the optimism seemed out of step with public concern about the disruptive effect on privacy and politics. Tech leaders make the rounds: On his first trip to the forum, Tim Cook, the Apple chief executive, met with world leaders, including President Jair Bolsonaro of Brazil and Dubai’s crown prince, Sheikh Hamdan bin Mohammed bin Rashid al-Maktoum. Sheryl Sandberg, the chief operating officer of Facebook, acknowledged that her company needed to earn back the trust of the public. Microsoft’s chief executive, Satya Nadella, said that as facial recognition technology grew, he would “welcome regulation that will help the marketplace not be a race to the bottom.” The milkman makes a comeback Environmental issues took center stage, with world leaders and celebrities weighing in and new partnerships being formed. One of the biggest initiatives announced at the forum was an alternative recycling platform called Loop, which seeks to change the way consumers buy brand-name products. The concept: The project revives the milkman concept, in which products are delivered in reusable containers that are returned to the manufacturer. The partners: Some of the largest consumer goods companies — including Danone, Mars Petcare, Mondelez International, Nestlé, PepsiCo, Procter & Gamble and Unilever — are working together on the project as a way to limit waste. The pitchman: Tom Szaky, founder and chief executive of the recycling company TerraCycle, headed to Davos two years ago to meet with the leaders of packaged goods companies and push his big idea. Climate concerns dominated much of the discussion elsewhere at the gathering: • In an interview with Prince William, the naturalist David Attenborough took world leaders to task for waiting too long to address climate change. • Prime Minister Jacinda Ardern of New Zealand joined the chorus, urging her global counterparts to think about the role they play in addressing climate change, while Prime Minister Shinzo Abe of Japan called for action on the issue. • The singer Bono poked fun at sustainable development goals, saying, “The S.D.G.s, it does sound like a sexually transmitted disease, doesn’t it?” • An expected drop in private jet traffic to Davos this year could be a sign that participants are taking the environmental impact of their travel more seriously. • Greta Thunberg, a 16-year-old climate activist from Sweden, gave a speech urging the global elite to protect the planet. The best of the rest • Forum participants seemed receptive to Saudi Arabia’s damage control campaign over the killing of journalist Jamal Khashoggi. (Reuters) •The World Economic Forum hosts 3,000 official participants, but the population of Davos swells to 30,000 during the week. Here are the unaffiliated events, sessions and parties that drew celebrities like Matt Damon and Wyclef Jean. (CNBC) • The Bank of England is ready for Brexit and is disillusioned with Bitcoin, said its governor, Mark Carney. (Bloomberg) • Hundreds of protesters, some waving signs that read “Let them eat money,” complained that the elite participants at Davos cared more about the bottom line than about the state of the world. (AP)