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The 2021 Global Risks Report is the 16th edition of the Forum’s annual analysis and looks back on a year devastated by a global pandemic, economic recession, political upheaval and the deepening climate crisis. The report explores how countries and companies can act against these risks.
Unsurprisingly, one of the big changes between this year and last, in terms of risks, has been caused by the COVID-19 coronavirus pandemic. The risk posed by infectious diseases now ranks at number one, while in 2020 it ranked 10th.
Widespread effects
“The immediate human and economic costs of COVID-19 are severe,” the report says. “They threaten to reduce years of progress in reducing poverty and global inequality and further damage social cohesion and global cooperation.”
Environmental threats are among some of the largest by probability and impact. Image: Global Risks Report 2021
For those reasons, the pandemic demonstrates why infectious diseases top the list of impacts. COVID-19 has not only led to widespread loss of life, it is also slowing economic development in some of the poorest parts of the world, while amplifying wealth inequalities around the world.
At the same time, there are concerns that fighting the pandemic is taking resources away from other critical health problems, including the disruption of measles vaccination programs.
Climate concerns
But despite the inescapable consequences of COVID-19, it is climate-related issues that make up the bulk of this year’s list of risks, which the report describes as “an existential threat to humanity.” Despite a drop in carbon emissions caused by lockdowns and disruption to international trade and travel, there are concerns that as economies start to recover, emissions will skyrocket.
The 2021 Risk Report is based on data and insights from a wide range of respondents through the World Economic Forum’s Global Risk Perception Survey. The survey was completed by more than 650 members of the Forum’s various leadership communities.
One such community is Global Shapers, the Youth Forum network that drives dialogue, action and change. For them, climate-related risks are considered “the most likely long-term risks with the greatest impact.” They also make a note of caution about the dangers of “youth disappointment” around the world.
Unless global emissions decrease, the threat of environmental crises remains high. Image: Global Risks Report 2021
“They view personal risks as immediate threats, macro risks in the medium term, and fundamental geopolitical risks in the long term,” the report says.
Short-term threats, likely to materialize in the next two years, include infectious diseases, livelihood crises, digital inequality, and disillusionment of young people.
Looking at medium-term risks in the next three to five years, Global Shapers identified asset bubble explosions, IT infrastructure ruptures, price instability and debt crises.
In the long term, the community expressed concern about weapons of mass destruction, the collapse of the state, loss of biodiversity and adverse technological advances.
Counteract the risks
Along with the risks listed, the report reflects on responses to COVID-19 to draw lessons that could strengthen global resilience.
These include formulating analytical frameworks, creating new forms of partnership, and building trust through clear and consistent communication.
There are all kinds of risks the world faces. Image: Global Risks Report 2021
It also includes recommendations to help countries and companies act, rather than react, to risks.
The Forum’s next Davos Agenda virtual event will bring together world leaders to discuss how to advance the principles, policies and partnerships necessary to achieve this.
Source: World Economic Forum
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