The World Economic Forum has released a report saying the world faces five major risks in 2020


The annual World Economic Forum annual meeting once again caused global attention. Nearly 3,000 leaders from 117 countries and regions will attend the 50th WeF Annual Meeting. This year's weF annual Meeting will, as always, focus on the theme of development of The Times, seek common ground while reserving differences through exchanges and dialogues, pool global ideas and join forces to seek global development.

Ahead of the annual meeting, the World Economic Forum (WEF) released its 15th Global Risks Report (2020), saying that the world will face five major risks in 2020, including geopolitical instability, further slowdown of the global economy, fiercer climate change, increased security threats in cyberspace, and worsening global political and economic inequality. Faced with these challenges, the international community and stakeholders should take immediate action to address them.



The report identifies five major risks facing the world in 2020. First, geopolitical instability leads to global instability. Imbalances in the world's economic, demographic and technological power have led to new geopolitical instability. The long-established international structure of the multilateral system and its values have been called into question, and countries are increasingly responding to challenges and pursuing their own goals through unilateralism and nationalistic gestures.

Second, economic stability and social cohesion are under threat. Macroeconomic fragility and financial inequality are putting downward pressure on the global economy and increasing the risk of a slowdown, with low trade barriers, prudent fiscal policies and strong global investment, once seen as positive factors for growth, being eroded as some national leaders continue to push nationalist policies. The scope for monetary and fiscal policy stimulus is less than it was before the international financial crisis and macroeconomic uncertainty has increased. Economic rivalries between countries and political divisions within countries are also major risks. Affected by the economic outlook, the public dissatisfaction with the status quo, many countries government to deal with significant economic and social problems are unpopular, frequent protests around the world, which reduces the government in the economic downturn's ability to act decisively, countries will lack of response to major global risk for financial resources, political capital, and social support.

The third is the impending climate crisis and the accelerating loss of biodiversity. Natural disasters have become more severe and frequent over the past five years, with last year seeing unprecedented weather extremes around the world. Climate experts warn that rising global temperatures will have serious consequences for life and property, as well as economic, social, environmental and geopolitical consequences, and that the combined short-term effects of climate change will eventually create a major global emergency. Environmental issues top the list of long-term global risks. Increased biodiversity loss will have a significant negative impact on humanity, with a high risk of occurrence and an accelerating rate of species extinction compared to the past.

Fourth, the digital divide and Internet inequality threaten the healthy development of the global economy. Although digital technology and network development lead to huge economic and social benefits for the world, but Internet access inequality, lack of global governance framework, network security problems and network space fragmentation, constitute the major risks, including information infrastructure collapse, also threatens mining and utilization of next generation network technology potential.

Fifth, the health and medical systems are under unprecedented pressure. Social, environmental, demographic and technological patterns are undergoing new changes. Cardiovascular diseases and mental illnesses have replaced infectious diseases as the leading causes of death, and the increased economic and social costs of prolonged life expectancy and chronic disease management have put many countries' health care systems in crisis.

The report predicts that 2020 will be a year of geopolitical instability, rising international polarization and slower economic growth, with unilateralism likely to continue to prevail. The report also forecasts global environmental risk points over the next 10 years, including extreme weather events that cause significant damage such as property loss, infrastructure damage and loss of human life; The failure of governments and businesses to tackle climate change; Man-made damage to the environment and its attendant disasters, including soil damage and the spread of radioactive contamination; The loss of biodiversity and the collapse of ecosystems (land and sea) have irreversible consequences for the environment, resulting in the severe depletion of natural resources on which human survival depends; Earthquakes, tsunamis, volcanic eruptions, geomagnetic storms and other major natural disasters occur frequently. (Economic Daily Reporter Yang Haiquan)

Source: China Economic Net -- Economic Daily