Global Risks Report 2025 | 17 Jan 2025
Why in News?
The World Economic Forum (WEF) released the 20th Global Risks Report 2025.
Note: Global Risks Report is an annual report published by the WEF. It presents an analysis of the most pressing global risks anticipated over short-term (2 years) and long-term (10 years) periods.
- Global risk is the potential for an event to significantly harm global GDP, population, or natural resources.
What are Key Findings of the Global Risks Report 2025?
- Top Risks for India: The report highlighted the top five risks for India include water supply shortages, misinformation and disinformation, erosion of human rights and civic freedoms, pollution (air, water, and soil), and labour and talent shortages.
- Top Global Risks:
- Immediate Risks (Next 2 years): Misinformation and disinformation, Extreme weather events, and State based armed conflict.
- Long-Term Risks (Next 10 Years): Extreme weather events, Biodiversity loss and ecosystem collapse and Critical changes to earth systems.
- Geopolitical Bridges: India and Gulf countries are emerging as key multilateral alternatives amid rising US-China rivalry, bridging the West and East to reduce tensions and promote cooperation.
- Trade Protectionism: Inflation Reduction Act, 2022 of US and Make in India in India highlights the growing trend of geoeconomic 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, the fracturing of global trust, and the climate crisis need multilateral solutions for achieving cooperation across borders.
World Economic Forum (WEF)
- About: WEF is an international organization for public-private cooperation, headquartered in Geneva, Switzerland.
- It engages global leaders to shape agendas across industries, regions, and globally.
- Foundation: It was founded by Klaus Schwab in 1971 as the European Management Forum, WEF emphasizes long-term benefits for all stakeholders, not just short-term profits for shareholders.
- Evolution: In 1973, the WEF expanded its focus to economic and social issues. It introduced membership for the world’s leading 1,000 companies in 1975.
- In 1987, it became the World Economic Forum, broadening its role as a platform for dialogue. It was recognized as an international organization in 2015.
- Major Reports: WEF publishes key reports, including the Global Competitiveness Index, Global Gender Gap Index, Energy Transition Index, Global Risk Report, and Global Travel and Tourism Competitiveness Index.
UPSC Civil Services Examination, Previous Year Questions (PYQs)
Prelims
Q. The Global Competitiveness Report is published by the (2019)
(a) International Monetary Fund
(b) United Nations Conference on Trade and Development
(c) World Economic Forum
(d) World Bank
Ans: (c)
Q. Which of the following gives ‘Global Gender Gap Index’ ranking to the countries of the world? (2017)
(a) World Economic Forum
(b) UN Human Rights Council
(c) UN Women
(d) World Health Organization
Ans: (a)