In News:

• The World Economic Forum (WEF) has released the 20th edition of the Global Risks Report 2025, outlining the most pressing global risks over short-term (1-2 years) and long-term (10 years) horizons.
• The report, based on the Global Risks Perception Survey (GRPS) 2024-2025, categorizes risks across economic, environmental, geopolitical, societal, and technological domains.

Key Findings of the Report

Short-Term Risks (1-2 Years)

• Misinformation and Disinformation – Undermines trust in governance and institutions, complicating global cooperation.
• Extreme Weather Events – Rising costs and frequency due to climate change.
• State-Based Armed Conflict – Geopolitical tensions, including conflicts such as the Russia-Ukraine war.

Long-Term Risks (10 Years)

• Extreme Weather Events – Ranked as the most significant long-term risk.
• Biodiversity Loss & Ecosystem Collapse – Drastic impact on food security and natural systems.
• Critical Changes to Earth Systems – Irreversible environmental shifts.

Evolving Global Risk Landscape

The risk landscape is shaped by four structural forces:

• Technological Acceleration – Rapid advancements in AI and digital platforms.
• Geostrategic Shifts – Increasing global polarization and armed conflicts.
• Climate Change – Rising environmental hazards.
• Demographic Bifurcation – Aging populations and labor shortages.

Specific Risks and Trends

Environmental Risks

• Pollution: Increasing air, water, and land contamination due to unsustainable production.
• Natural Disasters: Wildfires in the U.S. projected to cause over $200 billion in damages.
• Water Supply Shortages: A major concern for countries like India.

Economic and Trade Risks

• Escalating Trade Protectionism: Increase in tariffs and restrictions (e.g., Make in India, U.S. Inflation Reduction Act).
• Economic Uncertainty: Global inflation projected to decrease to 3.5% by 2025, but trade tensions may reignite financial instability.
• Foreign Direct Investment (FDI) Decline: A 10% drop in 2023 due to trade fragmentation.

Technological Risks

• Misinformation & Disinformation: AI-generated content fuels societal polarization.
• Cybersecurity Threats: AI-driven cyberattacks and algorithmic biases in governance.
• Surveillance & Censorship: Increased digital monitoring with inadequate legal safeguards.

Geopolitical and Societal Risks

• Erosion of Human Rights: Increasing authoritarian surveillance and control.
• Migration & Resource Shortages: Climate-induced migration is a rising global concern.
• Pension Crisis: Aging populations in countries like Japan and Germany threaten economic stability.

India-Specific Risks

1. Water Shortages – Critical impact on agriculture and urban development.
2. Misinformation & Disinformation – Threatens democratic institutions and governance.
3. Pollution (Air, Water, Soil) – Major environmental and health hazard.
4. Labor & Talent Shortages – Workforce challenges due to demographic shifts.
5. Erosion of Civic Freedoms – Concerns over digital surveillance and censorship.

Policy Recommendations

Global and Domestic Strategies

• Strengthen Multilateral Cooperation: WTO reforms and global trade dispute resolutions.
• Boost Domestic Resilience: Investment in infrastructure, healthcare, and education.
• Combat Pollution: Stricter regulations on air and water pollutants.
• Address Algorithmic Bias: Global standards for AI governance and accountability.
• Ethical Oversight for Biotech: WHO-led regulations for human genome editing.

Long-Term Sustainability Measures

• Flexible Work Policies: Encouraging non-linear career paths.
• Pre-Retirement Health Programs: Improving lifestyle choices to reduce healthcare costs.
• Pension System Reforms: Raising retirement ages and ensuring financial security for retirees.