Ahead of its annual summit in Davos on January 15 to 19, the World Economic Forum (WEF) has released its Global Risks Report 2024. It offers a somber view of human development’s future, drawing on nearly two decades of original risks perception data. Additionally, it highlights the increasing vulnerability of states and individuals to various risks, most notably the twin threats of disinformation and environmental challenges, in the short and long run.
Short-term risks
The Global Risks Report 2024, a collaborative effort with Zurich Insurance Group and Marsh McLennan, incorporates insights from over 1,400 global experts. According to WEF, misinformation and disinformation are the most significant short-term risks.
It further highlights the intertwined risks of AI-driven misinformation, societal polarization and the cost-of-living crisis as primary concerns for 2024. In light of upcoming elections in key economies, the rise of false information and societal unrest is particularly worrying.
Experts also expect that the lack of economic opportunities will persist in the next few years, along with increasing costs of commodities, involuntary migration and pollution.
According to WEF, “Conflict-prone or climate-vulnerable countries may increasingly be isolated from investment, technologies and related job creation. In the absence of pathways to safe and secure livelihoods, individuals may be more prone to crime, militarization or radicalization.”
Long-term concerns
Meanwhile, extreme weather events and critical changes to Earth’s systems pose significant long-term concerns. The WEF findings reflect a predominantly pessimistic outlook. While 30 percent of experts predict an elevated chance of global catastrophes within the next two years, nearly two-thirds expect it over the next decade.
Environmental risks — such as biodiversity loss, ecosystem collapse and natural resource shortages — also dominate the long-term risk landscape. However, there is a disparity in the perceived urgency of these risks between private sector respondents and those from civil society or government.
“Private sector respondents believe that most environmental risks will materialize over a longer timeframe than civil society or government, pointing to the growing risk of getting past a point of no return,” noted WEF.
In the long run, experts also acknowledge the negative impact of misinformation, disinformation and adverse outcomes of AI technologies.
Read: Global cooperation declined 2 percent from 2020 to 2022: WEF
Call for action and cooperation
The Global Risks Report 2024 depicts a dire global risk landscape, both in the short and long term. As such, leaders need to focus on addressing the aforementioned risks.
“The world is undergoing significant structural transformations with AI, climate change, geopolitical shifts and demographic transitions. Known risks are intensifying and new risks are emerging – yet they also provide opportunities,” remarked John Scott. He is the head of Sustainability Risk at Zurich Insurance Group.
He added, “Collective and coordinated cross-border actions play their part, but localized strategies are critical for reducing the impact of global risks. The individual actions of citizens, companies and countries can move the needle on global risk reduction, contributing to a brighter, safer world.”
Echoing the same sentiment, Saadia Zahidi, WEF’s managing director, said, “World leaders must come together to address short-term crises as well as lay the groundwork for a more resilient, sustainable, inclusive future.”
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