GLOBAL RISKS REPORT 2024

1. In January,2024 the World Economic Forum (WEF) released the 19^th edition of Global Risk Report 2024.
2. It highlights severe risks expected over the next decade amid technological change, economic uncertainty, a warming planet, and conflict.

What is Global Risk?

1. Global risk is defined as the possibility of the occurrence of an event or condition which, if it occurs, would negatively impact a significant proportion of global gross domestic product, population or natural resources.

• In other words, something bad affecting a lot of the world, like money, people, or nature.

2. The Global Risks Report is an annual study published by the World Economic Forum ahead of the Forum’s Annual Meeting in Davos, Switzerland.

Current risk landscape

Key Highlights

1. Global Outlook Decline: Global events in 2023, including conflicts, extreme weather, and societal discontent, contribute to a largely negative outlook.

1. Societal discontent is the feeling that people have that the deterioration of society is out of control and therefore cannot be stopped.

2. AI Powered Misinformation and Disinformation: Most severe risks over the next two years.

1. Rapid advances in technology, especially Generative AI chatbots like ChatGPT, raise concerns about creating fake content for manipulation.

2. This risk coincides with elections in several countries, including the United States, Britain, Indonesia, India, Mexico, and Pakistan in 2024.

3. Structural Forces Shaping Global Risks:

1. Four structural forces shaping global risks in the next decade are: Climate change, Demographic Bifurcation (a structural force refers to changes in demographics), Technological Acceleration, and Geostrategic (strategy that links geography with war strategies) shifts.

2. These forces represent long-term shifts contributing to uncertainty and volatility.

4. Environmental risks, especially extreme weather, dominate the risk landscape across all time frames.

1. Concerns include climate change, biodiversity loss, and critical changes to Earth systems with potential irreversible consequences.

5. Economic Strains (stress) and Inequality: The cost-of-living crisis and economic risks like inflation and economic downturn are significant concerns for 2024.

1. Economic uncertainty may disproportionately affect low and middle-income countries, leading to potential digital isolation (situation where people are unable to access digital media and devices) and worsening (deteriorating) societal and environmental impacts.

6. Security Risks and Technological Advances: Interstate armed conflict is a new top risk in the next two years.

1. Technological advances, especially in artificial intelligence, pose security risks. It enables non-state actors to access disruptive tools, potentially increasing conflict and crime.

7. Geopolitical Shifts and Governance Challenges: A deeper divide between global powers, especially between the Global North and South, may lead to challenges in international governance.

1. The growing influence of states in the Global South, combined with geopolitical tensions could reshape security dynamics and impact global risks.

Recommendations suggested

1. Use local strategies with investment and rules to reduce risks. Both public and private sectors are important for this.

2. Prioritizing the future and focusing on research and development through single breakthrough for making the world a safer place.

3. The collective actions of individual citizens, companies, and countries can collectively impact global risk reduction.

4. Even in a divided world, cross-border collaboration is crucial for major risks.

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