Daily Current Affairs : 15-January-2024
The World Economic Forum (WEF) recently released its Global Risk Report 2024, offering insights into the significant challenges looming over the next decade. This comprehensive study examines a myriad of factors, including technological disruptions, economic uncertainties, environmental issues, and geopolitical tensions, shaping the global risk landscape.
Key Highlights: Global Events Impacting Outlook
- Events in 2023, such as conflicts, extreme weather, and societal discontent, contribute to an overall negative global outlook.
- Rapid technological advances emphasize the severity of misinformation and disinformation risks.
- Generative AI, exemplified by chatbots like ChatGPT, raises concerns about synthetic content manipulation.
- AI-driven misinformation emerges as a significant risk during global elections in several countries.
Structural Forces Shaping Risks:
- Climate change, demographic shifts, technological acceleration, and geostrategic changes are identified as long-term forces shaping global risks.
- Interactions among these forces contribute to uncertainty and volatility.
Dominance of Environmental Risks:
- Extreme weather and environmental concerns dominate the risk landscape across various time frames.
- Climate change, biodiversity loss, and critical Earth system changes pose risks with potential irreversible consequences.
Economic Challenges for 2024:
- Cost-of-living crisis, inflation, and economic downturn pose significant risks.
- Economic uncertainty may disproportionately affect low- and middle-income countries, leading to potential digital isolation and societal impacts.
Emergence of Interstate Armed Conflict:
- Interstate armed conflict enters the top risk rankings for the next two years.
- Technological advances, especially in artificial intelligence, enable non-state actors to access disruptive tools, increasing conflict and crime risks.
Global Power Dynamics and Governance Challenges:
- Deeper divides between global powers, especially between the Global North and South, may challenge international governance.
- Growing influence of Global South states, coupled with geopolitical tensions, could reshape security dynamics and impact global risks.
Recommendations:
Localized Strategies:
- Utilize localized strategies through investment and regulation to reduce the impact of foreseeable risks.
- Engage both the public and private sectors to extend benefits equitably.
Breakthrough Endeavors:
- Prioritize the future through research and development efforts.
- Support single breakthrough endeavors to enhance global safety.
Collective Actions:
- Recognize the significance of collective actions by individuals, companies, and countries.
- Even seemingly insignificant efforts, when amassed, can contribute significantly to global risk reduction.
Cross-Border Collaboration:
- Emphasize the importance of cross-border collaboration at scale.
- Address risks crucial for human security and prosperity through collaborative efforts.
Understanding Global Risk:
Definition:
- Global risk is the potential occurrence of an event or condition that, if realized, would negatively impact a substantial portion of global GDP, population, or natural resources.
Global Risks Report:
- An annual study published by the World Economic Forum (WEF) ahead of the Forum’s Annual Meeting in Davos, Switzerland.
World Economic Forum (WEF):
About:
- WEF is a Swiss nonprofit foundation founded in 1971, headquartered in Geneva, Switzerland.
- Recognized by Swiss authorities as the international institution for public-private cooperation.
Mission:
- Committed to improving the state of the world by engaging leaders from business, politics, academia, and society to shape global, regional, and industry agendas.
Founder and Executive Chairman:
- Klaus Schwab.
Important Points:
Global Events Impacting Outlook:
- Events in 2023 contribute to a predominantly negative global outlook.
- Rapid technological advances emphasize the severity of misinformation and disinformation risks.
- AI-driven misinformation emerges as a significant risk during global elections.
Structural Forces Shaping Risks:
- Climate change, demographic shifts, technological acceleration, and geostrategic changes identified as long-term forces.
- Interactions among these forces contribute to uncertainty and volatility.
Dominance of Environmental Risks:
- Extreme weather and environmental concerns dominate the risk landscape.
- Climate change, biodiversity loss, and critical Earth system changes pose risks with potential irreversible consequences.
Economic Challenges for 2024:
- Cost-of-living crisis, inflation, and economic downturn pose significant risks.
- Economic uncertainty may disproportionately affect low- and middle-income countries, leading to potential digital isolation and societal impacts.
Emergence of Interstate Armed Conflict:
- Interstate armed conflict enters the top risk rankings for the next two years.
- Technological advances, especially in artificial intelligence, enable non-state actors to access disruptive tools, increasing conflict and crime risks.
Global Power Dynamics and Governance Challenges:
- Deeper divides between global powers may challenge international governance.
- Growing influence of Global South states, coupled with geopolitical tensions, could reshape security dynamics and impact global risks.
Recommendations:
- Utilize localized strategies through investment and regulation to reduce the impact of foreseeable risks.
- Prioritize the future through research and development efforts.
- Recognize the significance of collective actions by individuals, companies, and countries.
- Emphasize the importance of cross-border collaboration at scale.
Understanding Global Risk:
- Global risk is the potential occurrence of an event or condition that negatively impacts a substantial portion of global GDP, population, or natural resources.
World Economic Forum (WEF):
- WEF is a Swiss nonprofit foundation founded in 1971, headquartered in Geneva, Switzerland.
- Recognized by Swiss authorities as the international institution for public-private cooperation.
- Committed to improving the state of the world by engaging leaders from business, politics, academia, and society.
- Founder and Executive Chairman: Klaus Schwab.
Why In News
The World Economic Forum (WEF) presents a comprehensive Global Risk Report 2024, shedding light on imminent threats anticipated over the next decade. Amidst technological upheavals, economic fluctuations, climate concerns, and geopolitical tensions, the report underscores severe risks shaping our future, urging global leaders to collaborate on innovative solutions to navigate these challenges and build a more resilient and sustainable world.
MCQs about Global Risk Landscape in 2024
-
What are the dominant factors contributing to a negative global outlook in 2024, as mentioned in the Global Risk Report?
A. Economic fluctuations and technological advancements
B. Conflicts, extreme weather, and societal discontent in 2023
C. Advances in artificial intelligence
D. Global power dynamics and governance challenges
-
Which of the following is identified as a long-term force shaping global risks in the Global Risk Report?
A. Economic challenges for 2024
B. Technological acceleration
C. Emergence of interstate armed conflict
D. Deeper divides between global powers
-
What is emphasized as a significant risk during global elections in various countries, according to the Global Risk Report?
A. Economic downturn
B. Climate change
C. Misinformation and disinformation
D. Biodiversity loss
-
what is suggested to reduce the impact of foreseeable risks?
A. Prioritize the future through research and development efforts
B. Recognize the significance of collective actions
C. Utilize breakthrough endeavors
D. Utilize localized strategies through investment and regulation
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