The World Economic Forum, a Swiss-based, internationally recognized institution, recently published the 2022 Global Risks Report. This annual report is crucial for understanding global risk perceptions across five major categories, namely economic, environmental, geopolitical, societal, and technological. High-ranking individuals from business, government, and civil sectors contribute to the insights gathered in this comprehensive document.
Impact of Covid-19
The Covid-19 pandemic has had a profound effect on societal and environmental risks worldwide. Notably, “social cohesion erosion”, “livelihood crises”, and “mental health deterioration” are identified as the most significant global threats over the next two years. Besides these, the pandemic has also led to an increase in “debt crises”, “cybersecurity failures”, “digital inequality” and a “backlash against science”.
Global Economic Outlook
The short-term economic outlook, as per the report, is decidedly uncertain, fragmented, or catastrophically inclined. Persistent economic stagnation stands out as the most troubling challenge originating from the ongoing pandemic.
Environmental Risks
Environmental risks, especially “extreme weather” events and “climate action failure”, are outlined as imminent risks across short-, medium-, and long-term scenarios. Increasing pressure is being levied onto governments, businesses, and societies to shift towards net-zero economies in order to mitigate these challenges.
Geopolitical and Technological Risks
Over a more extended period, geopolitical and technological risks including “geoeconomic confrontations”, “geopolitical resource contestation” and “cybersecurity failure” demand attention and careful navigation.
International Risks
On the international stage, areas such as artificial intelligence, space exploration, cross-border cyberattacks, and migration-refugee crises top the list of concerns. Economic hardship, worsening climate change impacts, and political persecution are proving to be catalysts that compel millions to abandon their homes for a brighter future. Furthermore, the prospect of 70,000 satellite launches coupled with burgeoning space tourism calls for robust regulation to manage risks like collisions and the proliferation of space debris.
About World Economic Forum
Established in 1971 in Switzerland, The World Economic Forum (WEF) is recognized as the international platform for fostering public-private cooperation. Their mission revolves around improving global conditions by engaging leaders from business, political, academic, and societal sectors to shape international and industry agendas. A name synonymous with influential reports such as the Energy Transition Index, Global Competitiveness Report, Global IT Report and Global Gender Gap Report among others, the WEF continues to ignite crucial conversations about global developments. The organization is helmed by founder and Executive Chairman Klaus Schwab.