Global Risk Report 2024

Context:

The World Economic Forum (WEF) presents a comprehensive Global Risk Report 2024, shedding light on imminent threats anticipated over the next decade. Amidst technological upheavals, economic fluctuations, climate concerns, and geopolitical tensions, the report underscores severe risks shaping our future.

Relevance:

GS III: Indian Economy

Dimensions of the Article:

1. Key Highlights of the Global Risk Report 2024
2. Recommendations
3. Global Risk
4. World Economic Forum (WEF)

Key Highlights of the Global Risk Report 2024

Global Events Impacting Outlook:

• Events in 2023, like conflicts, extreme weather, and societal discontent, contribute to a predominantly negative global outlook.

Misinformation and Disinformation:

• Rapid technological advances highlight misinformation and disinformation as severe risks.
• Generative AI, including chatbots like ChatGPT, raises concerns about synthetic content manipulation.
• AI-driven misinformation emerges as a risk during global elections in countries like the US, UK, Indonesia, India, Mexico, and Pakistan.

Structural Forces Shaping Risks:

• Climate change, demographic shifts, technological acceleration, and geostrategic changes are identified as long-term forces shaping global risks.
• Interactions among these forces contribute to uncertainty and volatility.

Dominance of Environmental Risks:

• Extreme weather and environmental concerns dominate the risk landscape across time frames.
• Climate change, biodiversity loss, and critical Earth system changes pose risks with potential irreversible consequences.

Economic Challenges for 2024:

• Cost-of-living crisis, inflation, and economic downturn pose significant risks.
• Economic uncertainty may disproportionately affect low- and middle-income countries, leading to potential digital isolation and societal impacts.

Emergence of Interstate Armed Conflict:

• Interstate armed conflict enters the top risk rankings for the next two years.
• Technological advances, especially in artificial intelligence, enable non-state actors to access disruptive tools, increasing conflict and crime risks.

Global Power Dynamics and Governance Challenges:

• Deeper divides between global powers, especially between the Global North and South, may challenge international governance.
• Growing influence of Global South states, coupled with geopolitical tensions, could reshape security dynamics and impact global risks.

Recommendations:

• Localized Strategies:
  • Utilize localized strategies through investment and regulation to reduce the impact of foreseeable risks.
  • Engage both the public and private sectors to extend benefits equitably.
• Breakthrough Endeavors:
  • Prioritize the future through research and development efforts.
  • Support single breakthrough endeavors to enhance global safety.
• Collective Actions:
  • Recognize the significance of collective actions by individuals, companies, and countries.
  • Even seemingly insignificant efforts, when amassed, can contribute significantly to global risk reduction.
• Cross-Border Collaboration:
  • Emphasize the importance of cross-border collaboration at scale.
  • Address risks crucial for human security and prosperity through collaborative efforts.

Global Risk:

• Definition:
  • Global risk is the potential occurrence of an event or condition that, if realized, would negatively impact a substantial portion of global GDP, population, or natural resources.
• Global Risks Report:
  • An annual study published by the World Economic Forum (WEF) ahead of the Forum’s Annual Meeting in Davos, Switzerland.

World Economic Forum (WEF):

• About:
  • WEF is a Swiss nonprofit foundation founded in 1971, headquartered in Geneva, Switzerland.
  • Recognized by Swiss authorities as the international institution for public-private cooperation.
• Mission:
  • Committed to improving the state of the world by engaging leaders from business, politics, academia, and society to shape global, regional, and industry agendas.
• Founder and Executive Chairman:
  • Klaus Schwab.
• Major Reports:
  • Energy Transition Index.
  • Global Competitiveness Report.
  • Global IT Report (jointly with INSEAD and Cornell University).
  • Global Gender Gap Report.
  • Global Travel and Tourism Report.

-Source: The Hindu