Global Risks Report 2023 and Bangladesh
Dr Matiur Rahman :
The World Economic Forum published its 18th edition of the Global Risks Report 2023 in January of this year. The report mentioned that the first years of this decade had heralded a particularly disruptive period in human history. The return to a “new normal” following the Covid-19 pandemic was quickly disrupted by the outbreak of war in Ukraine, ushering in a new series of crises in food and energy – triggering problems that decades of progress had sought to solve.
The world faces risks that feel both wholly new and eerily familiar. We have seen a return of “older” risks – inflation, cost-of-living crises, trade wars, capital outflows from emerging markets, widespread social unrest, geopolitical confrontation and the specter of nuclear warfare – which few of this generation’s business leaders and public policy-makers have experienced.
The Global Risks Perception Survey (GRPS) chose “Energy supply crisis”, “Cost-of-living crisis”, “Rising inflation”, “Food supply crisis”, and “Cyber attacks on critical infrastructure” as among the top risks for 2023 with the most significant potential impact on a global scale.
A part from the above risks the report mentioned other critical risks like climate action failure, extreme weather, biodiversity loss, human-made environmental damage, social cohesion erosion, and so on. These interconnected risks pose a significant threat to the global economy and society.
The report makes several recommendations for addressing these risks, including investing in climate change mitigation and adaptation, reducing greenhouse gas emissions, protecting biodiversity, investing in sustainable development, promoting social cohesion, and strengthening international cooperation.
Climate action failure, for example, is likely to lead to more extreme weather events, which could damage infrastructure and disrupt supply chains. The world is not on track to meet the goals of the Paris Agreement, which aims to limit global warming to well below 2 degrees Celsius above pre-industrial levels. This failure to act on climate change could have a devastating impact on the global economy and society.
Extreme weather events, such as floods, droughts, and wildfires, are becoming more frequent and severe due to climate change. These events can cause widespread damage to infrastructure, disrupt supply chains, and displace people.
Biodiversity loss could lead to the collapse of ecosystems, which could devastate food production and water supplies. Biodiversity is essential for the functioning of ecosystems and for human well-being. However, biodiversity is declining at an alarming rate due to human activities such as deforestation, over fishing, and pollution. This loss of biodiversity could have a devastating impact on food production, water supplies, and the resilience of ecosystems.
Human-made environmental damage could lead to releasing toxic pollutants, which could cause widespread health problems. Human activities are causing widespread environmental damage, such as air, water, and land pollution. This damage can significantly impact human health, the economy, and the environment.
Social cohesion erosion could lead to conflict and instability, making it more difficult to address other global challenges. Social cohesion is the glue that holds societies together. It is eroded by inequality, political polarization, and social unrest. The erosion of social cohesion can make it more difficult to address other global challenges.
The risks identified by the ‘Global Risks Report 2023’ are most likely to impact Bangladesh significantly. Bangladesh is already facing high living costs due to price hikes of daily essentials, energy, gas, electricity, housing, etc. The country is already experiencing the effects of climate change, including more frequent and intense heat waves, cyclones, floods, and droughts. These extreme weather events can cause widespread damage to property and infrastructure, displace people, and lead to loss of life.
Bangladesh is located in a seismically active region and is prone to various natural disasters, including earthquakes, cyclones, floods, and droughts. These disasters can cause widespread damage and loss of life.
Bangladesh is a growing target for cyber attacks. These attacks can disrupt critical infrastructure, steal sensitive data, and cause financial losses. Bangladesh has a history of political instability. This instability can lead to economic disruptions, social unrest, and violence. These risks are not mutually exclusive and can interact with each other in complex ways. For example, climate change can make extreme weather events more likely and severe. Political instability can make addressing climate change and other risks more difficult.
Bangladesh is a resilient country with a strong track record of overcoming challenges. However, the risks identified in the Global Risks Report 2023 pose a significant threat to the country’s future. Bangladesh must urgently mitigate these risks and build resilience to future shocks.
The risks identified in the Global Risks Report 2023 are not unique to Bangladesh. These risks are global and are affecting countries all over the world. However, Bangladesh is particularly vulnerable to these risks due to its geographic location, economic development, and political system.
The government of Bangladesh has a responsibility to take action to mitigate the risks identified in the Global Risks Report 2023. However, the government cannot do this alone. The private sector, civil society, and the international community also have a role to play. Bangladesh can build a more resilient future for its people by working together.
(The writer is a researcher and
development worker).
