World Economic Forum: Risk report warns of global dangers

According to the World Risk Report, the consequences of the war in Europe are making the fight against climate change more difficult – which is currently the greatest risk for the global economy. Common strategies for the long-term problems are necessary.

According to the World Risk Report, the war in Europe, international tensions and the corona pandemic have led to a whole series of serious problems that are closely related. These include supply bottlenecks in food and energy, skyrocketing prices and rising debts.

But tackling these acute problems must not mean that medium- and long-term problems disappear from public awareness, the report warns. In the next ten years, climate change and its consequences will pose the greatest threat to humanity. Politics and business must therefore develop joint strategies for these problems as quickly as possible and look at crises from different perspectives.

1200 decision makers surveyed

“The next decade will be marked by ecological and social crises,” write the experts in their risk analysis, which the World Economic Forum publishes once a year shortly before its meeting in Davos.

For the new “Global Risk Report” presented today, 1,200 experts worldwide were interviewed, including from business, science and politics. The report is also the basis for the debates at the World Economic Forum, which begins next Monday in Davos.

Will globalization stop?

The vast majority of the decision-makers surveyed expect constant changes with simultaneous shocks in the coming years, 13 percent even expect ongoing crises.

In the next two years, the increasing cost pressure is a particular danger, which could also lead to the world community moving further apart. High inflation, a worldwide recession and declining investments – especially in countries of the Global South – could stop globalization. And: “Many low-income countries face multiple crises: debt, climate change and food security.”

Climate change is the greatest threat

Climate change, which entails the greatest risk and at the same time is the crisis “for which we are least prepared”, will play a prominent role in the coming years. The risk analysts denounce the failure of politics in terms of climate protection and call for measures to be taken quickly to protect the climate:

The poorest in the world are the ones who suffer the most. “The knock-on effects will be felt most severely by the most vulnerable sections of society and already fragile states, contributing to rising poverty, hunger, violent protests, political instability and even state collapse,” the report said.

Trade wars as the new normal

The World Risk Report concludes that trade wars could become the norm going forward, “with increasing clashes between global powers and government intervention in markets over the next two years.” The rapid development of technological innovations also plays a role: the fact that societies are increasingly relying on technical networking makes them vulnerable – especially with regard to critical infrastructures.

The report warns strongly of the risk of simultaneous crises that reinforce each other. There is still a “window of time to create a safer future through effective preparation”.