WEF risk report highlights social erosion & livelihoods crisis

The World Economic Forum has released its annual Global Risks Report, highlighting the dire consequences of the COVID-19 pandemic on global inequality, social cohesion, and the environment. Managing Director Saadia Zahidi shared key insights from the report during a CNBC Africa interview, emphasizing the urgent need for action to address these pressing issues. The report surveyed over 1,000 global experts and leaders, revealing a bleak outlook on the state of the world. With 84% expressing deep concern or worry about the current situation, optimism remains scarce, with less than 4% feeling positive about the future. The erosion of social cohesion emerged as a top concern, exacerbating inequality and threatening livelihoods. In the short term, the focus is on balancing social, economic, and environmental challenges, with jobs and mental health at the forefront. However, the looming climate crisis poses a significant long-term risk, dominating the top five concerns over the next five to ten years. The urgency to address these issues is further underscored by the unequal access to vaccines, with the hoarding of doses by wealthy nations perpetuating global disparities. Without equitable vaccine distribution, the world faces prolonged economic and social upheaval, hindering efforts to recover from the pandemic. The report also warns of a growing divergence between developed and developing economies, fueling inequality within countries and jeopardizing decades of progress in poverty reduction. Addressing the digital divide is crucial to fostering growth and innovation, particularly in Africa, where access to the internet is essential for economic development. The threat of cyberattacks looms large, underscoring the importance of protecting data privacy and ensuring a secure online environment. South Africa, like many nations, grapples with economic stagnation, unemployment, and infrastructure challenges, posing a threat to its democracy. Global cooperation is essential in finding solutions to these complex issues, with the report stressing the need for cross-border collaborations and political will. Recommendations in the report underscore the importance of building global coalitions to drive systemic change and address key challenges such as reskilling initiatives and climate action. Looking ahead to 2022, the report warns of growing global inequality and the persistent threat of climate change, urging governments to strike a balance between social, economic, and environmental priorities. The need for resilience and proactive measures to tackle future crises is paramount, requiring a shift from emergency responses to long-term planning and sustainable investments.