GLOBAL RISKS REPORT 2025

The World Economic Forum's 2025 Global Risks Report highlights extreme weather events as the most severe long-term global risk, emphasizing the need for preparation. Immediate risks for India include water scarcity and misinformation, while long-term concerns focus on biodiversity loss and ecosystem collapse. The report underscores the growing importance of multilateral solutions.

Last Updated on 20th January, 2025
3 minutes, 46 seconds

Description

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Context:

According to the latest report of World Economic Forum (WEF) titled Global Risks Report 2025, extreme weather events have emerged as the most severe long-term risk the world must prepare for over the next decade.
Details:

The first edition of the report was published in 2006, in which extreme weather events were classified as "environmental risks". This year's report presents the findings of the Global Risks Perception Survey 2024-2025 (GRPS).

Key Findings of the Global Risks Report 2025

Category

Top Risks for India

Biggest Global Risks

Immediate Risks (next 2 years)

1. Water Scarcity
2. Misinformation and Disinformation
3. Violations of Human Rights and Civil Liberties
4. Pollution (Air, Water, Land)
5. Shortage of Labor and Talent

1. Misinformation and Disinformation
2. Extreme Weather Events
3. State Armed Conflict

Long-term Risks (next 10 years)

1. Extreme Weather Events
2. Biodiversity Loss and Ecosystem Collapse
3. Critical Changes to Earth Systems

Geopolitical Bridges

India and Gulf countries emerging as key multilateral alternatives amid growing US-China rivalry, bridging West and East to reduce tensions and promote cooperation

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Trade Protectionism

Inflation Reduction Act (2022) of the US and Make in India in India highlighting the growing trend of geo-economic confrontation and trade protectionism

Non-tariff barriers such as subsidies and industrial policy are emerging as key drivers of protectionism

Multilateral Solutions

Rising geopolitical tensions, erosion of global trust, and the climate crisis need multilateral solutions for cross-border cooperation.

 About World Economic Forum (WEF)  

  • The WEF is an international organization for public-private cooperation based in Geneva, Switzerland. It engages global leaders to shape agendas across industries, regions, and globally.
  • Foundation: Founded by Klaus Schwab in 1971 as the European Management Forum, the WEF emphasizes long-term benefits for all stakeholders, not just short-term profits for shareholders.
  • Evolution: In 1973, the WEF broadened its focus to economic and social issues. In 1975, it introduced membership for 1,000 of the world's leading companies.
    • In 1987, it became the World Economic Forum and expanded its role as a platform for dialogue. In 2015, it was recognized as an international organization.
  • Key Reports: WEF publishes key reports, including the Global Competitiveness Index, the Global Gender Gap Index, the Energy Transition Index, the Global Risk Report, and the Global Tourism and Travel Competitiveness Index.

Despite efforts to tackle climate change through initiatives such as Net Zero Emissions Management, the report highlights that pollution is often overlooked in green transition plans. Without concerted efforts to address pollution and climate change, risks to human health and ecosystems will continue to grow.

Source:

https://www.downtoearth.org.in/climate-change/extreme-weather-to-top-global-risks-for-next-decade-warns-world-economic-forum

PRACTICE QUESTION

  1. Discuss the key findings of the Global Risks Report 2025 and analyze their implications for India’s economic, environmental and geopolitical strategies. How can India mitigate the risks identified in the report to ensure sustainable development? (250 words)

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