WEF’s Global Risks Report 2023 finds cost of living crisis biggest short-term threat
DUBAI: As the world returns to a new normal following the global COVID-19 pandemic, the war in Ukraine is wreaking havoc on global supply chains, resulting in disruptions to energy, inflation, food and security, according to the latest Global Risks Report by the World Economic Forum. There are security threats. ,
The effects of these crises will be felt over the next two years, with the cost of living increasing, the risk of recession increasing, the credit crunch rising, and societies polarizing due to disinformation and misinformation.
The report argues that the window for action on the most serious long-term threats is rapidly closing and calls for collective action before the risks reach a tipping point.
According to the report, the cost of living crisis, natural disasters and extreme weather events, and geo-economic conflicts are the top three short-term risks.
However, environmental concerns are growing rapidly, with failure to mitigate climate change, lack of climate change adaptation, and natural disasters and extreme weather ranking as the top three long-term risks over the next 10 years.
“The short-term risk landscape is dominated by energy, food, debt and disasters. Those who are already most vulnerable are suffering – and in the face of many crises, those who qualify as vulnerable are the most vulnerable,” said WEF Managing Director Sadia Zahidi. They are expanding rapidly in rich and poor countries.
This year’s report also examines how current and future risks may interact with each other to create a “polycrisis”, a set of related global risks with complex impacts and unpredictable consequences. .
Due to the uncertainty of the links between global risks, the report suggests foresight exercises, which can help anticipate possible connections in order to determine measures that can reduce the scale and scope of polycrisis before they arise. Huh.
The report also recommends immediate and coordinated climate action as well as joint efforts between countries and public-private collaboration to strengthen financial stability, technology governance, economic growth and investment in research, science, education and health. .
“In an already toxic mix of known and growing global risks, a new shock event, from a new military conflict to a new virus, could become intolerable,” Zahidi said.
He added: “Climate and human development must be at the core of the concerns of global leaders to enhance resilience against future shocks.”
The Global Risk Report 2023, part of the WEF’s Global Risk Initiative, was produced in partnership with Marsh McLennan and Zurich Insurance Group and is based on views from more than 1,200 global risk experts, policy makers and industry leaders.
The upcoming 53rd edition of the WEF Annual Meeting, organized under the theme “Cooperation in a Fractured World”, comes amid rising tensions amid several looming crises and fragmentation of the geopolitical landscape.
The annual meeting, which takes place January 16-20 in Davos-Klosters, Switzerland, will host more than 2,700 leaders from 130 countries and see the highest-ever business participation with more than 1,500 leaders from 700 organizations registered.