More Sites

Economic, climate crises raise risks: WEF

Reported by AAP
Tuesday, January 8, 2013
Companies forced to change their nameConflict in Iraq and Syria is causing serious headaches for companies who happen to share the ISIS moniker

With rising economic strains on one side and ever more environmental concerns on the other, the world could soon find itself in "the perfect global storm", the World Economic Forum warned in a report on Tuesday.

"The world is more at risk as persistent economic weakness saps our ability to tackle environmental challenges," warned the WEF, which each year hosts a massive get-together of decision makers and activists at the Swiss mountain resort in Davos.

In its Global Risks 2013 report, based on a survey of more than 1,000 experts from industry, government, academia and civil society, WEF pointed out that crises and austerity measures were severely testing the global economic system.

At the same time, it stressed, the world faced rising global temperatures and more extreme weather like catastrophic flooding in China and Hurricane Sandy, which slammed into the East Coast of the United States in late October.

The acute social and economic difficulties are making the world more reluctant to address more long-term threats like climate change, while natural disasters wreak serious havoc on many economies, the report cautioned.

"Two storms - environmental and economic - are on a collision course," warned John Drzik, the head of Oliver Wyman Group and one of the experts surveyed for the report.

The experts, who were asked to rate 50 global risks, suggested the risk of growing wealth gaps was the most likely to materialise, followed by unsustainable government debt and rising greenhouse gas emissions.

They deemed however that major systemic financial failure would have the biggest impact if it happened, followed by a major water supply crisis and chronic fiscal imbalances.

The list of global risks "are essentially a health warning regarding our most critical systems," said WEF managing director Lee Howell, who edited the report.

"National resilience to global risks needs to be a priority so that critical systems continue to function despite a major disturbance, he added in the statement.

The risks highlighted in the report will be the focus of a special session at the WEF's annual meeting in Davos at the end of January.

27/11/2014 07:09Sydney, Australia. 27 November,2014
advertisement