Context: Recently, the World Economic Forum (WEF) has released the 20th edition of the Global Risks Report.

• Note: Global Risks Report is an annual report published by the WEF. It presents an analysis of the most pressing global risks anticipated over short-term (2 years) and long-term (10 years) periods.  

• Global risk is the potential for an event to significantly harm global GDP, population, or natural resources. 

Key findings of the Report 

• The report has considered various risks like geopolitical, environmental, societal and technological domains that threaten global stability and progress. 

• These risks are assessed over both short-term (1-2 years) and long-term (10 years) horizons. 

• Short Term Risks: Misinformation and disinformation remain leading short-term risks, eroding trust and exacerbating societal divides.  

• Other critical short-term risks include extreme weather events, state based armed conflicts, societal polarization, and cyber threats such as espionage and warfare. 

• Long Term Risks: The important long-term risks include extreme weather events, biodiversity loss & ecosystem collapse and critical change to earth systems. 

• Technological threats such as misinformation and adverse outcomes from AI also pose long term risks. 

• The report mentions that societal vulnerabilities such as Inequality, societal polarisation, and economic instability contribute to global fragility, complicating efforts for collective action. 

• It urges leaders to prioritize dialogue, strengthen international ties, and foster conditions for renewed collaboration to ensure a sustainable and inclusive future. 

World Economic Forum (WEF)  

• About: WEF is an international organization for public-private cooperation, headquartered in Geneva, Switzerland.   

• It engages global leaders to shape agendas across industries, regions, and globally.  

• Foundation: It was founded by Klaus Schwab in 1971 as the European Management Forum, WEF emphasizes long-term benefits for all stakeholders, not just short-term profits for shareholders.  

• Evolution: In 1973, the WEF expanded its focus to economic and social issues. It introduced membership for the world’s leading 1,000 companies in 1975.   

• In 1987, it became the World Economic Forum, broadening its role as a platform for dialogue. It was recognized as an international organization in 2015.  

• Major Reports: WEF publishes key reports, including the Global Competitiveness Index, Global Gender Gap Index, Energy Transition Index, Global Risk Report, and Global Travel and Tourism Competitiveness Index.