Global Risk Report 2023

Global Risk Report 2023

News: Global Risk Report was released recently by the World Economic Forum. 

Background:
• The Global Risks Report 2023 explores some of the most severe risks we may face over the next decade. As we stand on the edge of a low-growth and low-cooperation era, tougher trade-offs risk eroding climate action, human development and future resilience. 

About Global Risk Report:
• The Global Risks Report is an annual study published by the World Economic Forum ahead of the Forum’s Annual Meeting in Davos, Switzerland. Based on the work of the Global Risk Network, the report describes changes occurring in the global risks landscape from year to year.

Key Findings:
• The report identifies Top 10 risks and divides it into period of 2 years and 10 years.
• The immediate risks (in 2 years) include Cost of living crisis, Natural disasters and extreme weather events, Geoeconomic confrontation and others (See the image)
• The long term risks (in 10 years) include Failure to mitigate climate change, Natural disasters and extreme weather events, Large scale involuntary migration etc (See the image) 
• Major risks to India include Digital inequality; geopolitical confrontation for resources, the rising cost of living, debt crisis, natural disasters and extreme weather events
• Technologies such as AI, Quantum and Biotechnology are going to exacerbate the inequalities and digital divide (provided that no action is taken to mitigate it)
• Covid-19 and Ukraine war has resulted in rising inflation, rapid normalization of monetary policies, low-growth and low-investment era
• A miscalibration between monetary and fiscal policies will raise the likelihood of liquidity shocks, signaling a more prolonged economic downturn and debt distress on a global scale.
• Geopolitical fragmentation will drive geoeconomic warfare and heighten the risk of multi-domain conflicts. 
• Concurrent shocks, deeply interconnected risks and eroding resilience are giving rise to the risk of polycrises (one crisis leading to another and the overall impact far exceeds the sum of each part)
• Food, fuel and cost crises exacerbate societal vulnerability while declining investments in human development erode future resilience.

What are the other reports released by WEF?
• Global Competitiveness Report
• Global IT Report
• Global Gender Gap Report
• Global Risk Report
• Global Travel and Tourism Report
• Energy Transition Index