In the Global Risks Report 2021, prepared annually by the World Economic Forum (WEF), environmental risks dominated again. According to the report, the pandemic and the inequalities that increase with it pose economic risks in the medium term and geopolitical risks in the long term.
The World Economic Forum, which brings together important figures of economy and politics in the town of Davos in the Swiss Alps every year, was postponed to May this year due to the pandemic and will take place in Singapore, somewhere other than Davos, for the first time in history.
A call to “wake up” about long-term risks
In its Global Risks Report 2021, published yesterday ahead of the Davos Agenda Week to be held on January 25-29, the organization points out that the immediate agenda of the summit this year is “long-term” risks. In the written statement titled “The world needs to wake up about long-term risks”, it is emphasized that the COVID-19 pandemic fuels inequality and social fragmentation, and warns that this health crisis may not only be a health crisis in the medium and long term, but may radically shake economic and geopolitical stability.
Health risk can turn into economic and geopolitical risks
It is stated that the COVID-19 pandemic, which ranks first in the list of 10 risks with the greatest impact, initially increased inequalities and caused social fragmentation, but will threaten economies in 3-5 years and may shake geopolitical stability in 5-10 years.
On the other hand, environmental risks, which are among the most likely risks and whose impact will be quite large, will continue to be one of the most important agendas of Davos. In the report, environmental issues dominate among the risks that are both most likely and will have the most impact for the next decade. On the other hand, it is predicted that social fragmentation, uncertainty and concerns will damage the steps and coordination regarding these risks.
The main findings of the report prepared in collaboration with Zürich Insurance, Marsh McLennan and SK Holdings as a result of the Global Risk Perception survey are as follows:
Climate crisis is among the most likely and most effective risks: The risks most likely to occur in the next 10 years are extreme weather events, failure to take necessary steps for the climate crisis, human damage to the environment, monopolization of digital power, digital inequality and cyber security crises. Infectious diseases and livelihood crises are also among the most likely risks. The report emphasizes that cooperation in the climate crisis has weakened and that the transition to a green economy should definitely not be delayed. Although emissions decreased by 9 percent in the first half of 2020, it is warned that this data may make a strong return after the crises.
The pandemic triggers social divisions: Imbalances in the healthcare system, education and financial stability also lead to the effects of the pandemic being unbalanced, which is predicted to fuel both economic vulnerabilities and social divisions.
Pandemics and livelihood crises in the short term: 60% of respondents see infectious diseases and livelihood crises as the most short-term risks to the world.
Digital inequality is on the rise: Although the pandemic has accelerated the 4th Industrial Revolution, strong trends such as e-commerce, online education and remote work may also increase inequalities. Digital inequality may prevent the post-pandemic recovery from being inclusive.
Young people’s eyes will be opened: The young generation trying to join the workforce at a time when employment is frozen is facing another major crisis after the climate crisis and economic crises. Their education, well-being and mental health are at risk due to the pandemic. The report emphasizes that these young people’s “eyes will be opened” and that the global community is not yet aware of this risk.
Post-pandemic polarization in the industry: Since the pandemic supports do not go to all companies in the industry equally and the effects are severe, the gap between large and small companies after the pandemic increases, inequality increases, and this makes it difficult to reach sustainable development goals.
Economy dominates the medium-term risk list
Asset bubble, inflation, commodity shocks and debt crises…
Risks projected to materialize within three to five years (medium term) are economy-related, according to most WEF survey participants. While the asset bubble comes first, the only technological risk on the list is the collapse of IT infrastructures. Then, inflation, commodity shocks and debt crises are listed as medium-term risks expected to occur in the world in the medium term.
Mental health is among the top short-term risks
As for the shortest-term risks, deterioration in mental health, livelihood crises and pandemic are in the top three. Digital inequality and extreme weather events are also among the shortest-term risks.
The biggest blindness is in environmental risks
The main risks that cause the greatest blindness and that survey participants think are not taken enough steps are the failure to take the necessary steps in the climate crisis and the deterioration in mental health. Loss of biodiversity, youth blindness and digital inequality are risks that participants believe are not being taken adequately.
Source: https://www.dunya.com/dunya/davosun-acil-gundemleri-iklim-pandemi-ve-esitsiz-haberi-607454
