Global Risks | Perceptions by World Economic Forum
In recent years, humanity has been facing unprecedented crises, with the most severe of them being the pandemic, wars, economic instability, political disputes, and social and racial inequalities. More than ever nowadays within this turbulent global context, the mobilization of both government and organizations is vital to accomplish a beneficial outcome for all individuals equally.
How is that going to happen? Who is taking responsibility?
The World Economic Forum is an international organization for public-private cooperation. It is a nonprofit foundation with the noble purpose to engage the leading political, business, cultural and other leaders of society to shape international, regional and industry agendas. It indicates entrepreneurship in the global public interest, while maintaining the most elevated standards of governance.
Applying the stakeholder theory, they have created a unique institutional culture that asserts that an organization is accountable to all parts of society. In addition, they provide a platform for leaders from all stakeholder groups from around the world to come together.
However, for a positive outcome to transpire, one must be able to recognize the impending threats that may cause destructive conditions for humankind.
The Global Risks Report 2022, conducted by the World Economic Forum, mentions the most significant threats that are imminent to plague humanity. The Global Risks Report series tracks global risks perceptions among risk experts and world leaders in business, government, and civil society.
The five most concerning threats are climate action failure, extreme weather, biodiversity loss, erosion of social cohesion, and livelihood crises.
The first and foremost threat is climate action failure which indicates the inability of all parties to function collaboratively to restrain climate change. Climate change continues to be perceived as a threat that has the highest potential to severely inflict the most damage on a global scale.
As stated in the report, we are heading to a “too little, too late” situation with the “hothouse world scenario” making the world uninhabitable. Global capacity to mitigate and adapt will be diminished, eventually leading to losses projected to be between 4% and 18% of global GDP7 with different impacts across regions.
Secondly, extreme weather and climate-related occurrences that result in hazards such as floods and droughts will become more frequent and intense in many regions.
Heatwaves are projected to occur as often as every two years in the second half of the 21st century. As a result, harmful impacts on ecosystems, economic sectors, and human health and well-being are to be expected.
The third global risk considered crucial by the World Economic Forum is biodiversity loss. The planet is undergoing the “greatest biodiversity loss since the dinosaurs vanished” as Vanda Felbab-Brown has stated. (Senior fellow at The Brookings Institution).
More specifically, ‘’biodiversity loss describes the reduction in the number, genetic variability, and variety of species, and the biological communities in a given area.’’ In recent years, human activities have played a major role in the reduction of the variety of all living things on our planet. ‘’Plant and animal species are disappearing at an ever-faster rate now’’.
The fourth global risk concerns the erosion of social cohesion. It is perceived as most potentially damaging for the next ten years. Inequality prevails in many sectors, such as economic, political, technological, and intergenerational. These issues were already challenging societies even before income disparities increased through the pandemic. These discriminations are now expected to broaden. ‘’The richest 20% of the world’s population will have recovered half their losses in 2021, while the poorest 20% will have lost 5% more of their income.’’ By 2030, 51 million more people are projected to live in extreme poverty compared to the pre-pandemic trend. (Research by the World Bank).
Lastly, livelihood crises are the most anticipated if we consider prevailing conditions. ‘‘Globally 205 million people are forecast to face unemployment this year and 108 million more workers are now classed as poor or extremely poor than in 2019.’’ Some of the most damaging occurrences of work prospects and standards for the working-age population are unemployment, underemployment, lower wages, fragile contracts, erosion of worker rights, etc.
All in all, these impending threats should not daunt us. Instead, they should act as a driving force for cooperative effort and action.
‘’Progress happens by bringing together people from all walks of life who have the drive and the influence to make positive change.’’ — WEF.
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By Genεsis team:
