Do you know what is the most important global risk of the next 2 years? Cost of living crisis. In other words, the economic cost of meeting basic needs has risen dramatically. It has spread globally to include the majority, thus becoming a huge risk.
Well, what do you think of the other 2 most important global risks coming after this? Natural disasters, extreme weather events and geoeconomic conflict.
Geoeconomic conflict is the weaponization of economic policy among global powers. It highlights vulnerabilities posed by commercial, financial, and technological interdependence. These vulnerabilities affect both the public and private sectors.
The environment created by the epidemic and following war influences economic policy. It is increasingly directed towards geopolitical targets, especially in developed countries. Supply chains are broken, and ‘sacred’ globalization is ravaged. Countries have begun to tighten their defenses. They aim to boost local production and reduce foreign interference in critical sectors. These include tougher measures like tighter investment screening. They also include data localization policies, visa bans, and exclusion of companies from key markets. In other words, each sheep takes the necessary measures to hang from its ‘economic leg’.
Is it possible to prepare for long-term risks?
The World Economic Forum’s 2023 Global Risks Report includes data and analysis that will be discussed and discussed a lot. It also offers valuable predictions for the short and long-term landscape it reveals.
Issues like the economic situation, high inflation, and declining household income shape the daily life system. The difficulty of meeting basic vital needs like heating due to the energy crisis further complicates this system. Disasters created by extraordinary natural conditions add an extra burden to these difficult living conditions.
We are in a critical situation. As we combat these ongoing shocks, we need to take firm steps today to manage long-term risks. We are entering a period of low growth. Investment is low, and cooperation is lacking. The steps we take today will determine our future risk environment. We must make sure that addressing current crises does not distort the long-term perspective.
Climate change and related crises constitute the weight of the global risks of the next 10 years:
Inability to mitigate climate change, failure of adaptation, natural disasters and extreme weather events, biodiversity loss and ecosystem collapse, large-scale forced migrations, natural resource crises…
Short-term risks are in fact steadily eroding economic, educational and health gains in much of the world. This interacts with many long-term environmental risks. It also engages geopolitical risks. Together, these further threaten the security and stability of societies around the world.
The world faces a series of risks that are both entirely new and frighteningly familiar. The cost of living will dominate global risks in the next two years. The failure of climate action will be the dominant risk of the next decade.
The pains of economic development will bring us uncertain and turbulent years. The unlimited development of civil and military technologies will also contribute to this turbulence. The growing pressure on climate change in the ever-shrinking window adds to these uncertainties.
Risks from cybersecurity will remain a constant concern as technology exacerbates inequalities.
Current crises prevent resources from being used for long-term risks. If a significant policy change is not made, these issues will accelerate. Climate change effects are among these issues. Loss of biodiversity and food security concerns will also speed up the collapse of the entire ecosystem. Thus, it will threaten the food supply and livelihoods, especially in climate-vulnerable economies. This will amplify the effects of natural disasters and limit further progress in tackling the climate crisis.
Survive today, what about tomorrow?
The global risks defined for the short term of 2 years are clear. They show that humanity is in a ‘survival mode’. Issues such as climate crisis, transformation and biodiversity are only listed in a 10-year perspective.
Humanity does not want to express it openly. It first thinks of surviving in these conditions today. Only then does it consider ‘looking after’! Only then does it consider ‘looking after’!
If there’s anything left to look back on for later…
https://www.weforum.org/reports/global-risks-report-2023/
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