Global Risks Report 2022: WEF

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    In News 

    • Recently, the World Economic Forum (WEF) released the Global Risks Report 2022.

    About the report, 

    • The Global Risks Report series tracks global risks perceptions among risk experts and world leaders in business, government, and civil society. 
    • It examines risks across five categories:
      • Economic
      • Environmental
      • Geopolitical
      • Societal
      • Technological. 

    Major Finding 

    • Social cohesion erosion”, “livelihood crises” and “mental health deterioration” are three of the five risks seen as the most concerning threats to the world in the next two years. 
      • This societal scarring compounds the challenges of national policy-making, limiting the political capital.
    •  Environmental risks—in particular, “extreme weather” and “climate action failure”—appear as top risks in the short-, medium-and long-term outlooks
    • In the medium term, economic risks such as “debt crises” and “asset bubble burst” also emerge as governments struggle to balance fiscal priorities.
    •  In the longer-term horizon, geopolitical and technological risks are of concern too—including “geoeconomic confrontations”, “geopolitical resource contestation” and “cybersecurity failure”.
    • Severity:  Environmental risks have the potential to yield the most damage to people and the planet, followed by societal challenges. 
    • Image Courtesy; WEF
    • Growing insecurity in the forms of economic hardship, worsening impacts of climate change and political persecution will force millions to leave their homes in search of a better future. 
    • COVID-19:

      • The pandemic and its economic consequences continue to stifle countries’ ability to control the virus and facilitate a sustainable recovery.
        • The most serious challenge persisting from the pandemic is economic stagnation
        • mental health deterioration and extreme weather events were exacerbated by the pandemic.

    • The global economic gap will widen by 2024 when the developing countries will have fallen 5.5 per cent below their pre-pandemic expected GDP growth and advanced economies would have surpassed the same by almost 0.9 per cent.
    • Cybersecurity threats: 
      • Cybersecurity threats are growing and outpacing societies’ ability to effectively prevent or respond to them. 
      • Attacks on critical infrastructure, misinformation, fraud and digital safety will impact public trust in digital systems and increase costs for all stakeholders. 

    Suggestions 

    • Focus from leaders and public support is needed to strengthen international cooperation on global challenges.
    •  It is essential that businesses, policy-makers, and civil society advance comprehensive near- and long-term climate actions in line with the goals of the Paris Agreement on climate change.

    World Economic Forum

    • It is the International Organization for Public-Private Cooperation.
    • The Forum engages the foremost political, business, cultural and other leaders of society to shape global, regional and industry agendas.
    • It was established in 1971 as a not-for-profit foundation and is headquartered in Geneva, Switzerland.
    • It is independent, impartial and not tied to any special interests.
    • The report aims to serve “as a compass to track progress on relative gaps between women and men on health, education, economy and politics”.

    Some major reports published by WEF are

    • Fostering Effective Energy Transition report
    • Global Competitiveness Report.
    • Global Gender Gap Report.
    • Global Risk Report.
    • Global Travel and Tourism Report.
    • Global Social Mobility Report
    • Chief Economists Outlook

    Source: DTE