Why in News?

Recently, The World Economic Forum released its 16th edition of the Global Risks Report which analyses the risks from societal fractures—manifested through persistent and emerging risks to human health, rising unemployment, widening digital divides, youth disillusionment, and geopolitical fragmentation.

Background –

  • In 2020, the threat of a pandemic have become reality. As governments, businesses, and societies grapple with COVID-19, societal cohesion is extra crucial than ever.
  • The pandemic’s financial shockwave—running hours equal to 495 million jobs had been misplaced withinside the second area of 2020 alone—will at once boom inequality, however so can an choppy recovery.
  • Only 28 economies are anticipated to have grown in 2020. Nearly 60% of respondents to the GRPS diagnosed “infectious diseases” and “livelihood crises” because the pinnacle short-time period threats to the world.
  • Loss of lives and livelihoods will boom the danger of “social cohesion erosion”, additionally a crucial short-time period danger diagnosed withinside the GRPS.
  • 2020 turned into the warmest 12 months on record.
  • Poorer air quality, intense warmness and growing sea tiers are already remodeling towns.
  • Looming at the horizon, huge weather migration will accentuate with coastal flooding, extended droughts or intense pollution.
  • COVID-19 uncovered vulnerabilities and deep-rooted inequalities in towns to be able to get worse as urbanization maintains and migration flows accelerate.
  • Climate motion failure will upload to the mounting stress on city spaces.
  • With cautious planning, edition and the important investments, towns can emerge as the brand new sustainability hubs of the future.

Key Takeaways –

  • In the Global Risks Report 2021, they have shared the results of the latest Global Risks Perception Survey (GRPS), followed by analysis of growing social, economic and industrial divisions, their interconnections, and their implications on our ability to resolve major global risks requiring societal cohesion and global cooperation.
  • The report is based on WEF’s annual Global Risks Perception Survey, which comprises views of around 800 members of WEF’s diverse communities.
  • For the first time, the report features the results from over 200 members of its Global Shapers Community—a generation of emerging global social entrepreneurs and leaders, which uses its digital savviness to spotlight issues that are potential existential risks not only to its generation but to the wider global community.
  • The gap between the ‘haves’ and have-nots’ between countries and within countries could substantially widen causing billions of people to miss out on future opportunities.
  • In particular, young people who are about to experience the effects of their second major global crisis within a decade.
  • But, despite the impact of the pandemic, environmental risks continue to dominate the top spots by impact and likelihood towards the next decade.
  • According to the report, the following will be the short-term (0 to 2 years) risks:
  • Infectious diseases
  • Extreme Weather Events
  • Livelihood Diseases

The medium term (3 to 5 years) risks are:

  • IT Infrastructure Breakdown
  • Asset Bubble Burst
  • Price Instability

The long term (5 to 10 years) risks are:

  • State Collapse
  • Weapons of Mass Destruction
  • Biodiversity losses

The response to COVID-19 offers four governance opportunities to strengthen the overall resilience of countries, businesses and the international community:

  • formulating analytical frameworks that take a holistic and systems-based view of risk impacts;
  • investing in high-profile “risk champions” to encourage national leadership and international co-operation;
  • improving risk communications and combating misinformation; and
  • exploring new forms of public-private partnership on risk preparedness,” it further adds.

About the Report –

The report was released before the upcoming Davos Agenda Summit of World Economic Forum. This year, in 2021, the World Economic Forum is to launch the Great Reset Initiative alongside Davos Agenda Summit. The main aim of the report is to prepare the Government and other international communities during the times of crisis.

About World Economic Forum –

  • The World Economic Forum (WEF), based in Cologny, Geneva Canton, Switzerland, is an international NGO, founded on 24 January 1971.
  • The WEF’s mission is stated as “committed to improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas”.

The WEF hosts an annual meeting at the end of January in Davos, a mountain resort in Graubünden, in the eastern Alps region of Switzerland. The meeting brings together some 3,000 business leaders, international political leaders, economists, celebrities and journalists for up to five days to discuss global issues, across 500 sessions.

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